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108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-566
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PROVIDING FOR CONSIDERATION OF H.R. 4663, SPENDING CONTROL ACT OF 2004
_______
June 24 (legislative day, June 23), 2004.--Referred to the House
Calendar and ordered to be printed
_______
Mr. Hastings of Washington, from the Committee on Rules, submitted the
following
R E P O R T
[To accompany H. Res. 692]
The Committee on Rules, having had under consideration
House Resolution 692, by a record vote of 9 to 2, report the
same to the House with the recommendation that the resolution
be adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 4663, the
Spending Control Act of 2004, under a structured rule. The rule
provides one hour of general debate equally divided and
controlled by the chairman and ranking minority member of the
Committee on the Budget. The rule waives all points of order
against the bill and against its consideration.
The rule makes in order only those amendments printed in
this report. The rule provides that the amendments printed in
this report shall be considered only in the order printed in
this report, may be offered only by a Member designated in this
report, shall be considered as read, shall be debatable for the
time specified in this report equally divided and controlled by
the proponent and an opponent, shall not be subject to
amendment, and shall not be subject to a demand for a division
of the question in the House or in the Committee of the Whole.
The rule waives all points of order against the amendments
printed in this report, except that upon adoption of an
amendment in the nature of a substitute, only the last
amendment printed in this report shall be in order. Finally,
the rule provides one motion to recommit with or without
instructions.
COMMITTEE VOTES
Pursuant to clause 3(b) of House rule XIII the results of
each record vote on an amendment or motion to report, together
with the names of those voting for and against, are printed
below:
Rules Committee record vote No. 294
Date: June 24, 2004 (legislative day of June 23, 2004).
Measure: H.R. 4663--Spending Control Act of 2004.
Motion by: Mr. Frost.
Summary of motion: To make in order and provide the
appropriate waivers for the amendment offered by Representative
Spratt which restores the original Pay-As-You-Go (PAYGO) rules
as they were originally established under the 1990 Budget
Enforcement Act and extended in 1997. Requires that the net
cost of all mandatory spending increases and all tax cuts
enacted within a session be fully offset.
Results: Defeated 2 to 9.
Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay;
Reynolds--Nay; Frost--Yea; McGovern--Yea; Dreier--Nay.
Rules Committee record vote No. 295
Date: June 24, 2004 (legislative day of June 23, 2004).
Measure: H.R. 4663--Spending Control Act of 2004.
Motion by: Mr. Frost.
Summary of motion: To make in order and provide the
appropriate waivers for the amendment in the nature of a
substitute offered by Representative Stenholm which reinstates
for two years the provisions of the Budget Enforcement Act
which expired in 2002. Provides for a pay-as-you-go rule for
legislation that would increase the deficit and set
discretionary spending limits. The discretionary spending
limits would be set at the levels proposed in the President's
budget for two years, with separate categories for highway and
mass transit funding to reflect the House-passed transportation
bill. A separate vote would be required to consider legislation
that would increase the discretionary spending limits or waive
the pay-as-you-go requirement. Makes amendments to the Budget
Act to apply budget act points of order to unreported
legislation and provide more information regarding budget act
waivers.
Results: Defeated 2 to 9.
Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay;
Reynolds--Nay; Frost--Yea; McGovern--Yea; Dreier--Nay.
Rules Committee record vote No. 296
Date: June 24, 2004 (legislative day of June 23, 2004).
Measure: H.R. 4663--Spending Control Act of 2004.
Motion by: Mr. McGovern.
Summary of motion: To make in order and provide the
appropriate waivers for the amendment offered by
Representatives Stenholm and Castle which requires the Rules
Committee to include a justification for budget act waivers in
reports accompanying rules for consideration of legislation
requiring waivers. Applies budget act points of order to
unreported legislation. Requires CBO cost estimates to include
a projection of the cost of debt servicing (interest). Provides
for inclusion of budget compliance statements prepared by the
Budget Committee regarding budgetary implications in committee
reports.
Results: Defeated 2 to 9.
Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay;
Reynolds--Nay; Frost--Yea; McGovern--Yea; Dreier--Nay.
Rules Committee record vote No. 297
Date: June 24, 2004 (legislative day of June 23, 2004).
Measure: H.R. 4663--Spending Control Act of 2004.
Motion by: Mr. McGovern.
Summary of motion: To make in order and provide the
appropriate waivers for the amendment offered by Representative
Kirk which amends the rules of the House to allow a Member to
raise a point of order against a rule or order that would waive
section 302(f)(1) or 311(a)(1) of the Congressional Budget Act
of 1974.
Results: Defeated 2 to 9.
Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay;
Reynolds--Nay; Frost--Yea; McGovern--Yea; Dreier--Nay.
Rules Committee record vote No. 298
Date: June 24, 2004 (legislative day of June 23, 2004).
Measure: H.R. 4663--Spending Control Act of 2004.
Motion by: Mr. McGovern.
Summary of motion: To make in order and provide the
appropriate waivers for the amendment offered by Representative
Hensarling which converts the annual budget process to a two-
year biennial cycle beginning in the 110th Congress.
Results: Defeated 2 to 9.
Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay;
Reynolds--Nay; Frost--Yea; McGovern--Yea; Dreier--Nay.
Rules Committee record vote No. 299
Date: June 24, 2004 (legislative day of June 23, 2004).
Measure: H.R. 4663--Spending Control Act of 2004.
Motion by: Mr. McGovern.
Summary of motion: To make in order en bloc and provide the
appropriate waivers for the amendments offered by
Representative Young of Florida which: (1) amend House rules to
set the membership of the Budget Committee to be consistent
with the original 1973 recommendations of the Joint Study
Committee on Budget Control; and (2) establish a Joint
Committee to Conduct a Comprehensive Review of the
Congressional Budget Process.
Results: Defeated 2 to 9.
Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay;
Reynolds--Nay; Frost--Yea; McGovern--Yea; Dreier--Nay.
Rules Committee record vote No. 300
Date: June 24, 2004 (legislative day of June 23, 2004).
Measure: H.R. 4663--Spending Control Act of 2004.
Motion by: Mr. Goss.
Summary of motion: To report the resolution.
Results: Agreed to 9 to 2.
Vote by Members: Goss--Yea; Linder--Yea; Pryce--Yea; Diaz-
Balart--Yea; Hastings (WA)--Yea; Myrick--Yea; Sessions--Yea;
Reynolds--Yea; Frost--Nay; McGovern--Nay; Dreier--Yea.
SUMMARY OF AMENDMENTS MADE IN ORDER
(Summaries derived from information provided by the
amendment sponsor.)
1. Brady (TX/Turner (TX): Establishes a Federal Sunset
Commission to review all federal agencies and programs for
their efficiency, effectiveness, redundancy and need. (10
minutes)
2. Chocola: Replaces the 20 budget functions with a one-
page budget that divides spending into the following five
categories: mandatory spending, defense discretionary spending,
non-defense discretionary, emergency spending and interest.
Establishes a new emergency category that would be comprised of
both a rainy day reserve fund for non-military emergencies and
funding for military operations authorized by either a
declaration of war or the use of military force. The rainy day
fund would be equal to a rolling average of the five preceding
years' emergency spending. (10 minutes)
3. Hastings (WA)/Castle: Eliminates the requirement of
providing budget authority and outlays for the functional
categories in the budget resolution. Grants the House and
Senate Budget Committees the discretion to include such
functional categories, if any, they deem appropriate in the
budget resolution. The required contents of the budget
resolution would include: (1) total of new budget authority and
outlays; (2) revenues; (3) surplus or deficit; and (4) public
debt. (10 minutes)
4. Hensarling: Imposes an entitlement cap whereby the total
level of direct spending is limited to inflation and the growth
in a given program's beneficiary population. Inflation will be
the higher of either the Consumer Price Index or whatever
inflator (if any) is currently applicable to each program. This
entitlement cap will be enforced by an across-the-board
sequester of nonexempt accounts in the amount of any excess
above the cap. Certain protected programs could only face a
maximum two percent reduction. The entitlement cap will not
apply to Social Security. Provides that the new Medicare
prescription drug benefit will be excluded from the cap until
the program is fully phased-in. A sequester to enforce the cap
will not reduce the funding of certain exempt programs. In
addition to Social Security, substitute retirement programs
such as Tier I railroad and CSRS for federal retirees, and
other earned entitlements such as Medicare Part A, the newly
redrawn list will consist of those programs that fulfill
Constitutional requirements, meet government commitments, and
regulate economic institutions. In the event of a sequester,
the funding of certain protected programs could only be reduced
by a maximum of two percent. These so-called ``2% programs''
include Medicare Parts B-D, veterans, military and federal
retiree benefits, as well as certain low-income programs.
Requires the President's budget to include an analysis of the
long-term unfunded obligations of current entitlements, a
report on any increases enacted in the prior session of
Congress, and the impact of any proposals included in the
President's budget submission. The Congressional Budget Office
(CBO) will provide such estimates with each reported bill. (10
minutes)
5. Hensarling: Provides for an automatic continuing
resolution in the event that an agreement is not reached on
spending levels by the legal deadline. The federal government
will operate at the prior fiscal year's level. (10 minutes)
6. Kirk: Requires the Congressional Budget Office to
prepare an annual analysis that compares budgeted entitlement
spending to actual entitlement spending, with an account-by-
account breakdown to show spending trends and variances. (10
minutes)
7. Ryan (WI)/Gutknecht: Converts the current non-binding
budget resolution into a joint budget resolution that if signed
by the President would have the force of law. In addition, if
the President vetoes the budget resolution, Congress is allowed
to proceed on its own under a concurrent budget resolution. (10
minutes)
8. Ryan (WI)/Neugebauer: Establishes Budget Protection
Accounts which would allow Congress to target spending during
the appropriation and direct spending processes and redirect
that spending for deficit reduction at the end of the fiscal
year. (10 minutes)
9. Ryan (WI)/Stenholm/Castle: Initiates enhanced rescission
for the President to propose the elimination of wasteful
spending identified in appropriation bills. The proposal must
be transmitted to Congress accompanied by legislative language
for the rescissions and any necessary reduction in the spending
limits. Provides for expedited consideration through the
legislative process. (10 minutes)
10. Young (FL): Increases the fiscal year 2005
discretionary 302(a) allocation to Appropriations Committee to
ensure that the transportation guarantees contemplated in TEALU
and Vision 100 are fully met. The FY 2005 Budget Resolution did
not provide the budgetary resources to meet these guarantees
and without these resources the Transportation/Treasury
Appropriations bill will not be able to honor the funding
levels guaranteed in TEALU and Vision 100. (10 minutes)
11. Young (FL): Strikes section 2 of the bill (Extension of
Discretionary Spending Limits). (10 minutes)
12. Young (FL): Changes the start date of the fiscal year
to November 1. (10 minutes)
13. Young (FL): Requires sunsetting of all Federal programs
(except earned entitlements) effective October 1, 2006, unless
reauthorized prior to that date. (10 minutes)
14. Young (FL): Strikes the provisions relating to
limitations on advance appropriations. (10 minutes)
15. Spratt: Amendment in the Nature of a Substitute.
Restores the original Pay-As-You-Go (PAYGO) rules as they were
originally established under the 1990 Budget Enforcement Act
and extended in 1997. Requires that the net cost of all
mandatory spending increases and all tax cuts enacted within a
session be fully offset. Renews discretionary spending limits.
(30 minutes)
16. Hensarling: Amendment in the Nature of a Substitute.
Establishes joint budget resolution signed by the President
with the force of law, requiring President and Congress to
commit to same budget before spending money. Replaces 20
functions with one-page budget, setting spending for five
categories: mandatory, non-defense, defense, interest, and
emergencies. Permits biennial budgeting if President and
Congress agree in advance. Non-military emergencies must be
handled with ``rainy day'' fund; spending from fund must be for
sudden, urgent, unforeseen, and temporary emergencies. Provides
government shutdown protection with automatic continuing
resolution. Requires two-thirds supermajority vote in both
houses for over-budget spending. Such points of order are
protected from being waived in the House by a process used to
guard against unfunded mandates. Eliminates automatic tax
increases. Establishes ``Family Budget Protection Accounts'' to
allow Congress to redirect savings found during appropriations
process to tax relief or deficit reduction at the end of fiscal
year. Limits growth in entitlement spending to inflation
adjustment for each program and population growth;
discretionary caps allow growth for inflation, with firewall
separating defense, non-defense, and emergency spending. Limits
protected by points of order and enforced by sequesters.
Expands programs eligible for sequester; exempts Social
Security and Medicare Part A; protects Medicare Parts B, C, and
D, Medicaid, veterans, military, federal retiree benefits, and
certain low-income programs from reductions greater than 2%;
President can exempt defense or homeland security accounts for
national security. Sunsets every voluntary entitlement program
and all discretionary programs in FY08 and FY09 to allow cost-
benefit analysis of continued funding (exempts earned
benefits). Creates point of order to freeze program funding
where authorization has lapsed. Provides expedited
Congressional consideration of proposed presidential
rescissions. Commission recommends cutting waste, fraud, and
abuse; proposals receive expedited Congressional consideration
(including in defense and entitlement spending). Requires use
of nominal dollars to compare current spending with proposed
spending. Requires agencies to fund government share of
accruing costs of pension, retiree pay, and retiree health
benefits earned by federal civilian and military employees (no
change to retiree benefits). Defines public debt accurately by
excluding debt government owes to itself. Risk-assumed
budgeting provides for consideration of long-term liabilities
of business-related federal insurance programs. (30 minutes)
17. Kirk: Amendment in the Nature of a Substitute. The
current emergency appropriations procedure will be replaced by
a ``rainy day fund'' reserve account for emergencies, which is
built up over time and drawn down as needed. Budget projections
for the coming year will be compared to actual spending for the
previous year, not inflation-adjusted ``baselines.'' Federal
spending above a set cap will trigger a spending sequester that
imposes automatic, across-the-board spending reductions. Social
Security and Medicare accounts will be protected from spending
cuts. Discretionary spending must stay within an annual cap,
set by Congress every year. Enhanced Rescissions of Budget
Authority Identified by the President as Wasteful Spending. The
President would be given authority to eliminate wasteful
spending, by proposing a rescission package of spending.
Congress will consider the President's proposed rescission
package though expedited debate and an up-or-down vote. The
President will appoint a bipartisan Commission to make
recommendations on proposals to eliminate waste, fraud, and
abuse in the Federal budget. The Commission will prepare a
report to Congress that includes a list of wasteful or
duplicative programs that should be reviewed by Congress.
Through accrual accounting, Federal funding of pensions and
retirement benefits for federal employees and uniformed
services personnel will be properly accounted for in the annual
budget. Using accrual accounting principles, the budget will
note the present value costs of health benefits for federal
employees and uniformed services personnel. Federal debt to the
public would break out a separate accounting of intra-
governmental debt. The limit on Federal debt to the public
would be adjusted to apply solely to publicly issued Treasury
securities. PAYGO rules related to spending are extended until
2007. (30 minutes)
18. Young (FL): Amendment in the Nature of a Substitute.
The amendment would: (1) require sequestration of mandatory
spending in the event that OMB baseline estimates of mandatory
spending exceed previous estimates due to enacted legislation;
(2) require baseline estimates to exclude emergency spending;
(3) provide an exception for outlay components of certain
expiring receipts legislation when making estimates of
mandatory spending legislation; (4) change the start date of
the fiscal year to November (5) require sunsetting of all
Federal programs (except earned entitlements) effective October
1, 2006, unless reauthorized prior to that date; (6) requires
an adjustment to Appropriations Committee 302(a) allocations to
ensure that the transportation guarantees contemplated in TEALU
and Vision 100 are fully met; and (7) make technical and
conforming changes to the Balanced Budget and Emergency Deficit
Control Act of 1985. (30 minutes)
19. Young (FL): Strikes any provision that establishes,
extends, or enforces discretionary spending limits. (10
minutes)
TEXT OF AMENDMENTS MADE IN ORDER
(Subject to appropriate page and line number adjustments to conform to
the text of H.R. 4663)
1. An Amendment To Be Offered by Representative Brady of Texas, or His
Designee, Debatable for 10 Minutes
Page 2, after line 3, insert the following: ``TITLE I--
EXTENSION OF DISCRETIONARY SPENDING LIMITS AND PAY-AS-YOU-GO
REQUIREMENTS''.
Redesignate sections 2 through 9 as sections 101 through 108,
respectively, and on page 10, after line 21, add the following
new title:
TITLE II--ESTABLISHMENT OF FEDERAL AGENCY SUNSET COMMISSION
SEC. 201. REVIEW AND ABOLISHMENT OF FEDERAL AGENCIES.
(a) Schedule for Review.--Not later than one year after the
date of the enactment of this Act, the Federal Agency Sunset
Commission established under section 202 (in this title
referred to as the ``Commission'') shall submit to Congress a
schedule for review by the Commission, at least once every 12
years (or less, if determined appropriate by Congress), of the
abolishment or reorganization of each agency.
(b) Review of Agencies Performing Related Functions.--In
determining the schedule for review of agencies under
subsection (a), the Commission shall provide that agencies that
perform similar or related functions be reviewed concurrently
to promote efficiency and consolidation.
(c) Abolishment of Agencies.--
(1) In general.--Each agency shall--
(A) be reviewed according to the schedule
created pursuant to this section; and
(B) be abolished not later than one year
after the date that the Commission completes
its review of the agency pursuant to such
schedule, unless the agency is reauthorized by
the Congress.
(2) Extension.--The deadline for abolishing an agency
may be extended for an additional two years after the
date described in paragraph (1)(B) if the Congress
enacts legislation extending such deadline by a vote of
a super majority of the House of Representatives and
the Senate.
SEC. 202. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established a commission to be
known as the ``Federal Agency Sunset Commission''.
(b) Composition.--The Commission shall be composed of 12
members (in this title referred to as the ``members'') who
shall be appointed as follows:
(1) Six members shall be appointed by the Speaker of
the House of Representatives, one of whom may include
the Speaker of the House of Representatives, with
minority members appointed with the consent of the
minority leader of the House of Representatives.
(2) Six members shall be appointed by the majority
leader of the Senate, one of whom may include the
majority leader of the Senate, with minority members
appointed with the consent of the minority leader of
the Senate.
(c) Qualifications of Members.--
(1) In general.--(A) Of the members appointed under
subsection (b)(1), four shall be members of the House
of Representatives (not more than two of whom may be of
the same political party), and two shall be an
individual described in subparagraph (C).
(B) Of the members appointed under subsection (b)(2),
four shall be members of the Senate (not more than two
of whom may be of the same political party) and two
shall be an individual described in subparagraph (C).
(C) An individual under this subparagraph is an
individual--
(i) who is not a member of Congress; and
(ii) with expertise in the operation and
administration of Government programs.
(2) Continuation of membership.--If a member was
appointed to the Commission as a Member of Congress and
the member ceases to be a Member of Congress, that
member shall cease to be a member of the Commission.
The validity of any action of the Commission shall not
be affected as a result of a member becoming ineligible
to serve as a member for the reasons described in this
paragraph.
(d) Initial Appointments.--All initial appointments to the
Commission shall be made not later than 90 days after the date
of the enactment of this Act.
(e) Chairman; Vice Chairman.--
(1) Initial chairman.--An individual shall be
designated by the Speaker of the House of
Representatives from among the members initially
appointed under subsection (b)(1) to serve as chairman
of the Commission for a period of 2 years.
(2) Initial vice-chairman.--An individual shall be
designated by the majority leader of the Senate from
among the individuals initially appointed under
subsection (b)(2) to serve as vice-chairman of the
Commission for a period of two years.
(3) Alternate appointments of chairmen and vice-
chairmen.--Following the termination of the two-year
period described in paragraphs (1) and (2), the Speaker
and the majority leader shall alternate every two years
in appointing the chairman and vice-chairman of the
Commission.
(f) Terms of Members.--
(1) Members of congress.--Each member appointed to
the Commission who is a member of Congress shall serve
for a term of six years, except that, of the members
first appointed under paragraphs (1) and (2) of
subsection (b), 2 members shall be appointed to serve a
term of three years under each such paragraph.
(2) Other members.--Each member of the Commission who
is not a member of Congress shall serve for a term of
three years.
(3) Term limit.--(A) A member of the Commission who
is a member of Congress and who serves more than three
years of a term may not be appointed to another term as
a member.
(B) A member of the Commission who is not a member of
Congress and who serves as a member of the Commission
for more than 56 months may not be appointed to another
term as a member.
(g) Powers of Commission.--
(1) Hearings and sessions.--The Commission may, for
the purpose of carrying out this title, hold such
hearings, sit and act at such times and places, take
such testimony, and receive such evidence as the
Commission considers appropriate. The Commission may
administer oaths to witnesses appearing before it.
(2) Obtaining information.--The Commission may secure
directly from any department or agency of the United
States information necessary to enable it to carry out
its duties under this title. Upon request of the
Chairman, the head of that department or agency shall
furnish that information to the Commission in a full
and timely manner.
(3) Subpoena power.--(A) The Commission may issue a
subpoena to require the attendance and testimony of
witnesses and the production of evidence relating to
any matter under investigation by the Commission.
(B) If a person refuses to obey an order or subpoena
of the Commission that is issued in connection with a
Commission proceeding, the Commission may apply to the
United States district court in the judicial district
in which the proceeding is held for an order requiring
the person to comply with the subpoena or order.
(4) Immunity.--The Commission is an agency of the
United States for purposes of part V of title 18,
United States Code (relating to immunity of witnesses).
(5) Contract authority.--The Commission may contract
with and compensate government and private agencies or
persons for services without regard to section 3709 of
the Revised Statutes (41 U.S.C. 5).
(h) Commission Procedures.--
(1) Meetings.--The Commission shall meet at the call
of the Chairman.
(2) Quorum.--Seven members of the Commission shall
constitute a quorum but a lesser number may hold
hearings.
(i) Personnel Matters.--
(1) Compensation.--Members shall not be paid by
reason of their service as members.
(2) Travel expenses.--Each member shall receive
travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703
of title 5, United States Code.
(3) Director.--The Commission shall have a Director
who shall be appointed by the Chairman. The Director
shall be paid at a rate not to exceed the maximum rate
of basic pay payable for GS-15 of the General Schedule.
(4) Staff.--The Director may appoint and fix the pay
of additional personnel as the Director considers
appropriate.
(5) Applicability of certain civil service laws.--The
Director and staff of the Commission shall be appointed
subject to the provisions of title 5, United States
Code, governing appointments in the competitive
service, and shall be paid in accordance with the
provisions of chapter 51 and subchapter III of chapter
53 of that title relating to classification and General
Schedule pay rates.
(j) Other Administrative Matters.--
(1) Postal and printing services.--The Commission may
use the United States mails and obtain printing and
binding services in the same manner and under the same
conditions as other departments and agencies of the
United States.
(2) Administrative support services.--Upon the
request of the Commission, the Administrator of General
Services shall provide to the Commission, on a
reimbursable basis, the administrative support services
necessary for the Commission to carry out its duties
under this title.
(3) Experts and consultants.--The Commission may
procure temporary and intermittent services under
section 3109(b) of title 5, United States Code.
(k) Sunset of Commission.--The Commission shall terminate on
December 31, 2026, unless reauthorized by Congress.
SEC. 203. REVIEW OF EFFICIENCY AND NEED FOR FEDERAL AGENCIES.
(a) In General.--The Commission shall review the efficiency
and public need for each agency in accordance with the criteria
described in section 204.
(b) Recommendations; Report to Congress.--The Commission
shall submit to Congress and the President not later than
September 1 of each year a report containing--
(1) an analysis of the efficiency of operation and
public need for each agency to be reviewed in the year
in which the report is submitted pursuant to the
schedule submitted to Congress under section 201;
(2) recommendations on whether each such agency
should be abolished or reorganized;
(3) recommendations on whether the functions of any
other agencies should be consolidated, transferred, or
reorganized in an agency to be reviewed in the year in
which the report is submitted pursuant to the schedule
submitted to Congress under section 201; and
(4) recommendations for administrative and
legislative action with respect to each such agency,
but not including recommendations for appropriation
levels.
(c) Draft Legislation.--The Commission shall submit to
Congress and the President not later than September 1 of each
year a draft of legislation to carry out the recommendations of
the Commission under subsection (b).
(d) Information Gathering.--The Commission shall--
(1) conduct public hearings on the abolishment of
each agency reviewed under subsection (b);
(2) provide an opportunity for public comment on the
abolishment of each such agency;
(3) require the agency to provide information to the
Commission as appropriate; and
(4) consult with the General Accounting Office, the
Office of Management and Budget, the Comptroller
General, and the chairman and ranking minority members
of the committees of Congress with oversight
responsibility for the agency being reviewed regarding
the operation of the agency.
(e) Use of Program Inventory.--The Commission shall use the
program inventory prepared under section 208 in reviewing the
efficiency and public need for each agency under subsection
(a).
SEC. 204. CRITERIA FOR REVIEW.
The Commission shall evaluate the efficiency and public need
for each agency pursuant to section 203(a) using the following
criteria:
(1) The effectiveness, and the efficiency of the
operation of, the programs carried out by each such
agency.
(2) Whether the programs carried out by the agency
are cost-effective.
(3) Whether the agency has acted outside the scope of
its original authority, and whether the original
objectives of the agency have been achieved.
(4) Whether less restrictive or alternative methods
exist to carry out the functions of the agency.
(5) The extent to which the jurisdiction of, and the
programs administered by, the agency duplicate or
conflict with the jurisdiction and programs of other
agencies.
(6) The potential benefits of consolidating programs
administered by the agency with similar or duplicative
programs of other agencies, and the potential for
consolidating such programs.
(7) The number and types of beneficiaries or persons
served by programs carried out by the agency.
(8) The extent to which any trends, developments, and
emerging conditions that are likely to affect the
future nature and extent of the problems or needs that
the programs carried out by the agency are intended to
address.
(9) The extent to which the agency has complied with
the provisions contained in the Government Performance
and Results Act of 1993 (Public Law 103-62; 107 Stat.
285).
(10) The promptness and effectiveness with which the
agency seeks public input and input from State and
local governments on the efficiency and effectiveness
of the performance of the functions of the agency.
(11) Whether the agency has worked to enact changes
in the law that are intended to benefit the public as a
whole rather than the specific business, institution,
or individuals that the agency regulates.
(12) The extent to which the agency has encouraged
participation by the public as a whole in making its
rules and decisions rather than encouraging
participation solely by those it regulates.
(13) The extent to which the public participation in
rulemaking and decisionmaking of the agency has
resulted in rules and decisions compatible with the
objectives of the agency.
(14) The extent to which the agency complies with
section 552 of title 5, United States Code (commonly
known as the ``Freedom of Information Act'').
(15) The extent to which the agency complies with
equal employment opportunity requirements regarding
equal employment opportunity.
(16) The extent of the regulatory, privacy, and
paperwork impacts of the programs carried out by the
agency.
(17) The extent to which the agency has coordinated
with State and local governments in performing the
functions of the agency.
(18) The potential effects of abolishing the agency
on State and local governments.
(19) The extent to which changes are necessary in the
authorizing statutes of the agency in order that the
functions of the agency can be performed in the most
efficient and effective manner.
SEC. 205. COMMISSION OVERSIGHT.
(a) Monitoring of Implementation of Recommendations.--The
Commission shall monitor implementation of laws enacting
provisions that incorporate recommendations of the Commission
with respect to abolishment or reorganization of agencies.
(b) Monitoring of Other Relevant Legislation.--
(1) In general.--The Commission shall review and
report to Congress on all legislation introduced in
either house of Congress that would establish--
(A) a new agency;
(B) a new program to be carried out by an
existing agency.
(2) Report to congress.--The Commission shall include
in each report submitted to Congress under paragraph
(1) an analysis of whether--
(A) the functions of the proposed agency or
program could be carried out by one or more
existing agencies;
(B) the functions of the proposed agency or
program could be carried out in a less
restrictive manner than the manner proposed in
the legislation; and
(C) the legislation provides for public input
regarding the performance of functions by the
proposed agency or program.
SEC. 206. RULEMAKING AUTHORITY.
The Commission may promulgate such rules as necessary to
carry out this title.
SEC. 207. RELOCATION OF FEDERAL EMPLOYEES.
If the position of an employee of an agency is eliminated as
a result of the abolishment of an agency in accordance with
this title, there shall be a reasonable effort to relocate such
employee to a position within another agency.
SEC. 208. PROGRAM INVENTORY.
(a) Preparation.--The Comptroller General and the Director of
the Congressional Budget Office, in cooperation with the
Director of the Congressional Research Service, shall prepare
an inventory of Federal programs (in this title referred to as
the ``program inventory'') within each agency.
(b) Purpose.--The purpose of the program inventory is to
advise and assist the Congress and the Commission in carrying
out the requirements of this title. Such inventory shall not in
any way bind the committees of the Senate or the House of
Representatives with respect to their responsibilities under
this title and shall not infringe on the legislative and
oversight responsibilities of such committees. The Comptroller
General shall compile and maintain the inventory and the
Director of the Congressional Budget Office shall provide
budgetary information for inclusion in the inventory.
(c) Inventory Content.--The program inventory shall set forth
for each program each of the following matters:
(1) The specific provision or provisions of law
authorizing the program.
(2) The committees of the Senate and the House of
Representatives which have legislative or oversight
jurisdiction over the program.
(3) A brief statement of the purpose or purposes to
be achieved by the program.
(4) The committees which have jurisdiction over
legislation providing new budget authority for the
program, including the appropriate subcommittees of the
Committees on Appropriations of the Senate and the
House of Representatives.
(5) The agency and, if applicable, the subdivision
thereof responsible for administering the program.
(6) The grants-in-aid, if any, provided by such
program to State and local governments.
(7) The next reauthorization date for the program.
(8) A unique identification number which links the
program and functional category structure.
(9) The year in which the program was originally
established and, where applicable, the year in which
the program expires.
(10) Where applicable, the year in which new budget
authority for the program was last authorized and the
year in which current authorizations of new budget
authority expire.
(d) Budget Authority.--The report also shall set forth for
each program whether the new budget authority provided for such
programs is--
(1) authorized for a definite period of time;
(2) authorized in a specific dollar amount but
without limit of time;
(3) authorized without limit of time or dollar
amounts;
(4) not specifically authorized; or
(5) permanently provided,
as determined by the Director of the Congressional Budget
Office.
(e) CBO Information.--For each program or group of programs,
the program inventory also shall include information prepared
by the Director of the Congressional Budget Office indicating
each of the following matters:
(1) The amounts of new budget authority authorized
and provided for the program for each of the preceding
four fiscal years and, where applicable, the four
succeeding fiscal years.
(2) The functional and subfunctional category in
which the program is presently classified and was
classified under the fiscal year 2001 budget.
(3) The identification code and title of the
appropriation account in which budget authority is
provided for the program.
(f) Mutual Exchange of Information.--The General Accounting
Office, the Congressional Research Service, and the
Congressional Budget Office shall permit the mutual exchange of
available information in their possession which would aid in
the compilation of the program inventory.
(g) Assistance by Executive Branch.--The Office of Management
and Budget, and the Executive agencies and the subdivisions
thereof shall, to the extent necessary and possible, provide
the General Accounting Office with assistance requested by the
Comptroller General in the compilation of the program
inventory.
SEC. 209. DEFINITION OF AGENCY.
As used in this title, the term ``agency'' has the meaning
given that term by section 105 of title 5, United States Code,
except that such term includes an advisory committee as that
term is defined in section 102(2) of the Federal Advisory
Committee Act.
SEC. 210. OFFSET OF AMOUNTS APPROPRIATED.
Amounts appropriated to carry out this title shall be offset
by a reduction in amounts appropriated to carry out programs of
other Federal agencies.
----------
2. An Amendment To Be Offered by Representative Chocola of Indiana, or
His Designee, Debatable for 10 Minutes
Page 2, after line 3, insert the following:
TITLE I--EXTENSION OF DISCRETIONARY SPENDING LIMITS AND PAY-AS-YOU-GO
REQUIREMENTS
Redesignate sections 2 through 9 as sections 101 through 108,
respectively; on page 5, lines 23 and 24, strike ``paragraphs''
and insert ``paragraph''; on page 6, line 5, insert quotation
marks after the period and strike line 6 and all that follows
thereafter through page 7, line 12; on page 7, line 13, strike
``(c)'' and insert ``(b)''; and on page 7, strike line 25 and
insert the following: ``covered by subsection (b) or (c) of
section 316 of the Congressional Budget Act of 1974''.
At the end, add the following new titles:
TITLE II--ONE-PAGE BUDGET RESOLUTIONS
SEC. 201. ONE-PAGE BUDGET RESOLUTIONS.
(a) Content of Annual Concurrent Resolutions on the Budget.--
Section 301(a)(4) of the Congressional Budget Act of 1974 is
amended to read as follows:
``(4) subtotals of new budget authority and outlays
for nondefense discretionary spending, defense
discretionary spending, direct spending (excluding
interest), interest, and emergencies (for the reserve
fund in section 316(b) and for military operations in
section 316(c));''.
(b) Additional Matters in Concurrent Resolution.--Section
301(b) of the Congressional Budget Act of 1974 is amended as
follows:
(1) Strike paragraphs (2), (4), and (6) through (9).
(2) After paragraph (1), insert the following new
paragraph:
``(2) require such other congressional procedures,
relating to the budget, as may be appropriate to carry
out the purposes of this Act;''.
(3) At the end of paragraph (3), insert ``and'' and
redesignate paragraph (5) as paragraph (4) and in such
paragraph strike the semicolon and insert a period.
(c) Required Contents of Report.--Section 301(e)(2) of the
Congressional Budget Act of 1974 is amended as follows:
(1) Redesignate subparagraphs (A), (B), (C), (D),
(E), and (F) as subparagraphs (B), (C), (E), (F), and
(G), respectively.
(2) Before subparagraph (B) (as redesignated), insert
the following new subparagraph:
``(A) new budget authority and outlays for
each major functional category, based on
allocations of the total levels set forth
pursuant to subsection (a)(1);''.
(3) In subparagraph (C) (as redesignated), strike
``mandatory'' and insert ``direct spending''.
(d) Additional Contents of Report.--Section 301(e)(3) of the
Congressional Budget Act of 1974 is amended by striking ``and''
at the end of subparagraph (D), by striking the period and
inserting ``; and'' at the end of subparagraph (E), and by
adding at the end the following new subparagraph:
``(F) reconciliation directives described in
section 310.''.
(e) President's Budget Submission to the Congress.--(1) The
first two sentences of section 1105(a) of title 31, United
States Code, are amended to read as follows:
``On or after the first Monday in January but not later than
the first Monday in February of each year the President shall
submit a budget of the United States Government for the
following fiscal year which shall set forth the following
levels:
``(A) totals of new budget authority and outlays;
``(B) total Federal revenues and the amount, if any,
by which the aggregate level of Federal revenues should
be increased or decreased by bills and resolutions to
be reported by the appropriate committees;
``(C) the surplus or deficit in the budget;
``(D) subtotals of new budget authority and outlays
for nondefense discretionary spending, defense
discretionary spending, direct spending (excluding
interest), interest, and emergencies (for the reserve
fund in section 316(b) and for military operations in
section 316(c)); and
``(E) the public debt.
Each budget submission shall include a budget message and
summary and supporting information and, as a separately
delineated statement, the levels required in the preceding
sentence for at least each of the 4 ensuing fiscal years.''.
(2) The third sentence of section 1105(a) of title 31, United
States Code, is amended by inserting ``submission'' after
``budget''.
(f) Conforming Amendments to Section 310 Regarding
Reconciliation Directives.--(1) Section 310(a) of such Act is
amended by striking ``A'' and inserting ``The joint explanatory
statement accompanying the conference report on a''.
(2) The first sentence of section 310(b) of such Act is
amended by striking ``If'' and inserting ``If the joint
explanatory statement accompanying the conference report on''.
(3) Section 310(c)(1) of such Act is amended by inserting
``the joint explanatory statement accompanying the conference
report on'' after ``pursuant to''.
TITLE III--EMERGENCIES
SEC. 301. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.
(a) Elimination of Emergency Designation.--Sections
251(b)(2)(A), 252(e), and 252(d)(4)(B) of the Balanced Budget
and Emergency Deficit Control Act of 1985 are repealed.
(b) Elimination of Adjustments.--Section 314(b) of the
Congressional Budget Act of 1974 is amended by striking
paragraph (1) and by redesignating paragraphs (2) through (5)
as paragraphs (1) through (4), respectively.
(c) Conforming Amendment.--Clause 2 of rule XXI of the Rules
of the House of Representatives is amended by repealing
paragraph (e) and by redesignating paragraph (f) as paragraph
(e).
SEC. 302. OMB EMERGENCY CRITERIA.
(a) Definition of Emergency.--Section 3 of the Congressional
Budget and Impoundment Control Act of 1974 is amended by adding
at the end the following new paragraph:
``(11)(A) The term `emergency' means a situation
that--
``(i) requires new budget authority and
outlays (or new budget authority and the
outlays flowing therefrom) for the prevention
or mitigation of, or response to, loss of life
or property, or a threat to national security;
and
``(ii) is unanticipated.
``(B) As used in subparagraph (A), the term
`unanticipated' means that the situation is--
``(i) sudden, which means quickly coming into
being or not building up over time;
``(ii) urgent, which means a pressing and
compelling need requiring immediate action;
``(iii) unforeseen, which means not predicted
or anticipated as an emerging need; and
``(iv) temporary, which means not of a
permanent duration.''.
(b) Conforming Amendment.--The term `emergency' has the
meaning given to such term in section 3 of the Congressional
Budget and Impoundment Control Act of 1974.''.
SEC. 303. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF EMERGENCY
DEFINITION.
Not later than 5 months after the date of enactment of this
Act, the chairmen of the Committees on the Budget (in
consultation with the President) shall, after consulting with
the chairmen of the Committees on Appropriations and applicable
authorizing committees of their respective Houses and the
Directors of the Congressional Budget Office and the Office of
Management and Budget, jointly publish in the Congressional
Record guidelines for application of the definition of
emergency set forth in section 3(11) of the Congressional
Budget and Impoundment Control Act of 1974.
SEC. 304. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.
Section 1105(f) of title 31, United States Code is amended by
adding at the end the following new sentences: ``Such budget
submission shall also comply with the requirements of
subsections (b) and (c) of section 316 of the Congressional
Budget Act of 1974 and, in the case of any budget authority
requested for an emergency, such submission shall include a
detailed justification of why such emergency is an emergency
within the meaning of section 3(11) of the Congressional Budget
Act of 1974.''.
SEC. 305. BUDGETING FOR EMERGENCIES.
(a) Emergencies.--Title III of the Congressional Budget Act
of 1974 is amended by adding at the end the following new
section:
``EMERGENCIES
``Sec. 316. (a) Adjustments.--
``(1) In general.--After the reporting of a bill or
joint resolution or the submission of a conference
report thereon that provides budget authority for any
emergency as identified pursuant to subsection (d) that
is not covered by subsection (c)--
``(A) the chairman of the Committee on the
Budget of the House of Representatives or the
Senate shall determine and certify, pursuant to
the guidelines referred to in section 303 of
the Spending Control Act of 2004, the portion
(if any) of the amount so specified that is for
an emergency within the meaning of section
3(11); and
``(B) such chairman shall make the adjustment
set forth in paragraph (2) for the amount of
new budget authority (or outlays) in that
measure and the outlays flowing from that
budget authority.
``(2) Matters to be adjusted.--The adjustments
referred to in paragraph (1) are to be made to the
allocations made pursuant to the appropriate concurrent
resolution on the budget pursuant to section 302(a) and
shall be in an amount not to exceed the amount reserved
for emergencies pursuant to the requirements of
subsection (b).
``(b) Reserve Fund for Nonmilitary Emergencies.--The amount
set forth in the reserve fund for emergencies for budget
authority and outlays for a fiscal year pursuant to section
301(a)(4) shall equal--
``(1) the average of the enacted levels of budget
authority for emergencies (other than those covered by
subsection (c)) in the 5 fiscal years preceding the
current year; and
``(2) the average of the levels of outlays for
emergencies in the 5 fiscal years preceding the current
year flowing from the budget authority referred to in
paragraph (1), but only in the fiscal year for which
such budget authority first becomes available for
obligation.
``(c) Treatment of Emergencies To Fund Certain Military
Operations.--Whenever the Committee on Appropriations reports
any bill or joint resolution that provides budget authority for
any emergency that is a threat to national security and the
funding of which carries out a military operation authorized by
a declaration of war or a joint resolution authorizing the use
of military force (or economic assistance funding in
furtherance of such operation) and the report accompanying that
bill or joint resolution, pursuant to subsection (d),
identifies any provision that increases outlays or provides
budget authority (and the outlays flowing therefrom) for such
emergency, the enactment of which would cause the total amount
of budget authority or outlays provided for emergencies for the
budget year in the joint resolution on the budget (pursuant to
section 301(a)(4)) to be exceeded:
``(1) Such bill or joint resolution shall be referred
to the Committee on the Budget of the House or the
Senate, as the case may be, with instructions to report
it without amendment, other than that specified in
paragraph (2), within 5 legislative days of the day in
which it is reported from the originating committee. If
the Committee on the Budget of either House fails to
report a bill or joint resolution referred to it under
this subparagraph within such 5-day period, the
committee shall be automatically discharged from
further consideration of such bill or joint resolution
and such bill or joint resolution shall be placed on
the appropriate calendar.
``(2) An amendment to such a bill or joint resolution
referred to in this subsection shall only consist of an
exemption from section 251 of the Balanced Budget and
Emergency Deficit Control Act of 1985 of all or any
part of the provisions that provide budget authority
(and the outlays flowing therefrom) for such emergency
if the committee determines, pursuant to the guidelines
referred to in section 303 of the Spending Control Act
of 2004, that such budget authority is for an emergency
within the meaning of section 3(11).
``(3) If such a bill or joint resolution is reported
with an amendment specified in paragraph (2) by the
Committee on the Budget of the House of Representatives
or the Senate, then the budget authority and resulting
outlays that are the subject of such amendment shall
not be included in any determinations under section
302(f) or 311(a) for any bill, joint resolution,
amendment, motion, or conference report.
``(d) Committee Notification of Emergency Legislation.--
Whenever the Committee on Appropriations or any other committee
of either House (including a committee of conference) reports
any bill or joint resolution that provides budget authority for
any emergency, the report accompanying that bill or joint
resolution (or the joint explanatory statement of managers in
the case of a conference report on any such bill or joint
resolution) shall identify all provisions that provide budget
authority and the outlays flowing therefrom for such emergency
and include a statement of the reasons why such budget
authority meets the definition of an emergency pursuant to the
guidelines referred to in section 303 of the Spending Control
Act of 2004.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by inserting after the item
relating to section 315 the following new item:
``Sec. 316. Emergencies.''.
SEC. 306. APPLICATION OF SECTION 306 TO EMERGENCIES IN EXCESS OF
AMOUNTS IN RESERVE FUND.
Section 306 of the Congressional Budget Act of 1974 is
amended by inserting at the end the following new sentence:
``No amendment reported by the Committee on the Budget (or from
the consideration of which such committee has been discharged)
pursuant to section 316(c) may be amended.''.
SEC. 307. UP-TO-DATE TABULATIONS.
Section 308(b)(2) of the Congressional Budget Act of 1974 is
amended by striking ``and'' at the end of subparagraph (B), by
striking the period at the end of subparagraph (C) and
inserting ``; and'', and by adding at the end the following new
subparagraph:
``(D) shall include an up-to-date tabulation
of amounts remaining in the reserve fund for
emergencies.''.
----------
3. An Amendment To Be Offered by Representative Hastings of Washington,
or His Designee, Debatable for 10 Minutes
At the end, add the following new section:
SEC. . ESTABLISHMENT OF MACROECONOMIC CONGRESSIONAL BUDGETS.
(a) Macroeconomic Categories.--Section 301(a) of the
Congressional Budget Act of 1974 (2 U.S.C. 632(a)) is amended
by striking paragraph (4) and by redesignating paragraphs (5)
through (7) as paragraphs (4) through (6), respectively.
(b) Additional Matters.--Section 301(b) of the Congressional
Budget Act of 1974 (2 U.S.C. 632(b)) is amended by striking
``and'' at the end of paragraph (8), by striking the period and
inserting ``; and'' at the end of paragraph (9), and by adding
at the end the following new paragraph:
``(10) set forth appropriate levels for each fiscal
year covered by such concurrent resolution for new
budget authority and outlays for each major functional
category established by the Committees on the Budget
(after consultation with each other), based on
allocations of the total levels set forth pursuant to
subsection (a)(1).''.
----------
4. An Amendment To Be Offered by Representative Hensarling of Texas, or
His Designee, Debatable for 10 Minutes
Page 2, after line 3, insert the following:
TITLE I--EXTENSION OF DISCRETIONARY SPENDING LIMITS AND PAY-AS-YOU-GO
REQUIREMENTS
Redesignate sections 2 through 9 as sections 101 through 108,
respectively, and, at the end, add the following new titles:
TITLE II--SPENDING CAPS ON GROWTH OF ENTITLEMENTS AND MANDATORIES
SEC. 201. SPENDING CAPS ON GROWTH OF ENTITLEMENTS AND MANDATORIES.
(a) Control of Entitlements and Mandatories.--The Balanced
Budget and Emergency Deficit Control Act of 1985 is amended by
adding after section 252 the following new section:
``SEC. 252A. ENFORCING CONTROLS ON DIRECT SPENDING.
``(a) Cap on Growth of Entitlements.--Effective for fiscal
year 2005 and for each ensuing fiscal year, the total level of
direct spending for all direct spending programs, projects, and
activities (excluding social security) for any such fiscal year
shall not exceed the total level of spending for all such
programs, projects, and activities for the previous fiscal year
after the direct spending for each such program, project, or
activity is increased by the higher of the change in the
Consumer Price Index for All Urban Consumers or the inflator
(if any) applicable to that program, project, or activity and
the growth in eligible population for such, project, or
activity.
``(b) Sequestration.--Within 15 days after Congress adjourns
to end a session (other than of the second session of the One
Hundred Eighth Congress), and on the same day as a
sequestration (if any) under section 251, there shall be a
sequestration to reduce the amount of direct spending for the
fiscal year beginning in the year the Congress adjourns by any
amount necessary to reduce such spending to the level set forth
in subsection (a) unless that amount is less than $250,000,000.
``(c) Uniform Reductions; Limitations.--The amount required
to be sequestered for the fiscal year under subsection (a)
shall be obtained from nonexempt direct spending accounts by
actions taken in the following order:
``(1) First.--The reductions in the programs
specified in section 256(a) (National Wool Act and
special milk), section 256(b) (student loans), and
section 256(c) (foster care and adoption assistance)
shall be made.
``(2) Second.--Any additional reductions that may be
required shall be achieved by reducing each remaining
nonexempt direct spending account by the uniform
percentage necessary to achieve those additional
reductions, except that--
``(A) the low-income programs specified in
section 256(d) shall not be reduced by more
than 2 percent;
``(B) the retirement and veterans benefits
specified in sections 256(f), (g), and (h)
shall not be reduced by more than 2 percent in
the manner specified in that section; and
``(C) the medicare programs shall not be
reduced by more than 2 percent in the manner
specified in section 256(i).
The limitations set forth in subparagraphs (A), (B),
and (C) shall be applied iteratively, and after each
iteration the uniform percentage applicable to all
other programs under this paragraph shall be increased
(if necessary) to a level sufficient to achieve the
reductions required by this paragraph.
``(d) Exclusion of Medicare Prescription Drug Program Until
Fully Operational.--For purposes of this section with respect
to the limitation under subsection (a) for a fiscal year before
fiscal year 2008, direct spending programs and direct spending
shall not be construed to include part D of title XVIII of the
Social Security Act (or spending under part C of such title
that is attributable to such part D).''.
(b) Table of Contents Amendment.--The table of contents set
forth in 250(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by adding after the item
relating to section 252 the following new item:
``Sec. 252A. Enforcing controls on direct spending.''.
SEC. 202. EXEMPT PROGRAMS AND ACTIVITIES.
Section 255 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:
``SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
``(a) Social Security Benefits; Tier I Railroad Retirement
Benefits; and Certain Medicare Benefits.--(1) Benefits payable
under the old-age, survivors, and disability insurance program
established under title II of the Social Security Act, and
benefits payable under section 3(a), 3(f)(3), 4(a), or 4(f) of
the Railroad Retirement Act of 1974, shall be exempt from
reduction under any order issued under this part.
``(2) Payments made under part A of title XVIII (relating to
part A medicare hospital insurance benefits) of the Social
Security Act and payments made under part C of such title
(relating to the Medicare Advantage program) insofar as they
are attributable to part A of such title shall be exempt from
reduction under any order issued under this part.
``(b) Descriptions and Lists.--The following budget accounts
or activities shall be exempt from sequestration:
``(1) net interest;
``(2) all payments to trust funds from excise taxes
or other receipts or collections properly creditable to
those trust funds;
``(3) all payments from one Federal direct spending
budget account to another Federal budget account; and
all intragovernmental funds including those from which
funding is derived primarily from other Government
accounts, except to the extent that such funds are
augmented by direct appropriations for the fiscal year
for which the order is in effect;
``(4) activities resulting from private donations,
bequests, or voluntary contributions to the Government;
``(5) payments from any revolving fund or trust-
revolving fund (or similar activity) that provides
deposit insurance or other Government insurance,
Government guarantees, or any other form of contingent
liability, to the extent those payments result from
contractual or other legally binding commitments of the
Government at the time of any sequestration;
``(6) credit liquidating and financing accounts;
``(7) the following accounts, which largely fulfill
requirements of the Constitution or otherwise make
payments to which the Government is committed:
``Administration of Territories, Northern
Mariana Islands Covenant grants (14-0412-0-1-
806);
``Armed Forces Retirement Home Trust Fund,
payment of claims (84-8930-0-7-705);
``Bureau of Indian Affairs, miscellaneous
payments to Indians (14-230-0-1-452);
``Bureau of Indian Affairs, miscellaneous
trust funds, tribal trust funds (14-9973-0-7-
999);
``Claims, defense;
``Claims, judgments, and relief act (20-185-
0-1-806);
``Compact of Free Association, economic
assistance pursuant to Public Law 99 (14-0414-
0-1-806);
``Compensation of the President (11-0001-0-1-
802);
``Customs Service, miscellaneous permanent
appropriations (20-9992-0-2-852);
``Eastern Indian land claims settlement fund
(14-2202-0-1-806);
``Farm Credit Administration, Limitation on
Administration Expenses (78-4131-0-3-351);
``Farm Credit System Financial Assistance
Corporation, interest payments (20-1850-0-1-
351);
``Internal Revenue collections of Puerto Rico
(20-5737-0-2-852);
``Panama Canal Commission, operating expenses
and capital outlay (95-5190-0-2-403);
``Payments of Vietnam and USS Pueblo
prisoner-of-war claims (15-0104-0-1-153);
``Payments to copyright owners (03-5175-0-2-
376);
``Payments to health care trust funds (75-
0580-0-1-571);
``Payments to social security trust funds
(75-0404-0-1-651);
``Payments to the United States territories,
fiscal assistance (14-0418-0-1-801);
``Payments to widows and heirs of deceased
Members of Congress (00-0215-0-1-801);
``Pension Benefit Guaranty Corporation Fund
(16-4204-0-3-601);
``Salaries of Article III judges;
``Washington Metropolitan Area Transit
Authority, interest payments (46-0300-0-1-401);
``(8) the following noncredit special, revolving, or
trust-revolving funds:
``Coinage profit fund (20-5811-0-2-803);
``Comptroller of the Currency;
``Director of the Office of Thrift
Supervision;
``Exchange Stabilization Fund (20-4444-0-3-
155);
``Federal Housing Finance Board;
``Foreign Military Sales trust fund (11-
82232-0-7-155);
``National Credit Union Administration,
central liquidating facility (25-4470-0-3-373);
``National Credit Union Administration,
credit union insurance fund (25-4468-0-3-373);
``National Credit Union Administration
operating fund (25-4056-0-3-373); and
``Resolution Trust Corporation Revolving Fund
(22-4055-0-3-373);
``(9) Thrift Savings Fund;
``(10) appropriations for the District of Columbia to
the extent they are appropriations of locally raised
funds;
``(11)(A) any amount paid as regular unemployment
compensation by a State from its account in the
Unemployment Trust Fund (established by section 904(a)
of the Social Security Act);
``(B) any advance made to a State from the Federal
unemployment account (established by section 904(g) of
such Act) under title XII of such Act and any advance
appropriated to the Federal unemployment account
pursuant to section 1203 of such Act; and
``(C) any payment made from the Federal Employees
Compensation Account (as established under section 909
of such Act) for the purpose of carrying out chapter 85
of title 5, United States Code, and funds appropriated
or transferred to or otherwise deposited in such
Account; and
``(12)(A) FDIC, Bank Insurance Fund (51-4064-0-3-
373);
``(B) FDIC, FSLIC Resolution Fund (51-4065-0-3-373);
and
``(C) FDIC, Savings Association Insurance Fund (51-
4066-0-3-373);
``(c) Federal Retirement and Disability Accounts.--The
following Federal retirement and disability accounts shall be
exempt from reduction under any order issued under this part:
``Civil service retirement and disability fund (24-
8135-0-7-602).
``Black Lung Disability Trust Fund (20-8144-0-7-601).
``Foreign Service Retirement and Disability Fund (19-
8186-0-7-602).
``District of Columbia Judicial Retirement and
Survivors Annuity Fund (20-8212-0-7-602).
``Judicial Survivors' Annuities Fund (10-8110-0-7-
602).
``Payments to the Railroad Retirement Accounts (60-
0113-0-1-601).
``Tax Court Judges Survivors Annuity Fund (23-8115-0-
7-602).
``Employees Life Insurance Fund (24-8424-0-8-602).
``(d) Federal Administrative Expenses.--
``(1) Notwithstanding any provision of law other than
paragraph (3), administrative expenses incurred by the
departments and agencies, including independent
agencies, of the Government in connection with any
program, project, activity, or account shall be subject
to reduction pursuant to any sequestration order,
without regard to any exemption, exception, limitation,
or special rule otherwise applicable with respect to
such program, project, activity, or account, and
regardless of whether the program, project, activity,
or account is self-supporting and does not receive
appropriations.
``(2) Payments made by the Government to reimburse or
match administrative costs incurred by a State or
political subdivision under or in connection with any
program, project, activity, or account shall not be
considered administrative expenses of the Government
for purposes of this section, and shall be subject to
sequestration to the extent (and only to the extent)
that other payments made by the Government under or in
connection with that program, project, activity, or
account are subject to that reduction or sequestration;
except that Federal payments made to a State as
reimbursement of administrative costs incurred by that
State under or in connection with the unemployment
compensation programs specified in subsection (a)(11)
shall be subject to reduction or sequestration under
this part notwithstanding the exemption otherwise
granted to such programs under that subsection.
``(3) Notwithstanding any other provision of law, the
administrative expenses of the following programs shall
be exempt from sequestration:
``(A) Comptroller of the Currency.
``(B) Federal Deposit Insurance Corporation.
``(C) Office of Thrift Supervision.
``(D) National Credit Union Administration.
``(E) National Credit Union Administration,
central liquidity facility.
``(F) Federal Retirement Thrift Investment
Board.
``(G) Resolution Funding Corporation.
``(H) Resolution Trust Corporation.
``(I) Board of Governors of the Federal
Reserve System.
``(e) Veterans' Programs.--The following programs shall be
exempt from reduction under any order issued under this part:
``General Post Funds (36-8180-0-7-705).
``Veterans Insurance and Indemnities (36-0120-0-1-
701).
``Service-Disabled Veterans Insurance Funds (36-4012-
0-3-701).
``Veterans Reopened Insurance Fund (36-4010-0-3-701).
``Servicemembers' Group Life Insurance Fund (36-4009-
0-3-701).
``Post-Vietnam Era Veterans Education Account (36-
8133-0-7-702).
``National Service Life Insurance Fund (36-8132-0-7-
701).
``United States Government Life Insurance Fund (36-
8150-0-7-701).
``Veterans Special Life Insurance Fund (36-8455-0-8-
701).
``(f) Optional Exemption of Defense and Homeland Security
Accounts.--
``(1) In general.--The President may, with respect to
any defense or homeland security account, exempt that
account from sequestration or provide for a lower
uniform percentage reduction than would otherwise
apply.
``(2) Limitation.--The President may not use the
authority provided by paragraph (1) unless the
President notifies the Congress of the manner in which
such authority will be exercised on or before the date
specified in section 254(a) for the budget year.''.
SEC. 203. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
(a) In General.--Section 256 of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as
follows:
``SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
``(a) National Wool Act and the Special Milk Program.--
Automatic spending increases are increases in outlays due to
changes in indexes in the following programs:
``(1) National Wool Act; and
``(2) Special milk program.
In those programs all amounts other than the automatic spending
increases shall be exempt from reduction under any
sequestration order.
``(b) Student Loans.--For all student loans under part B or D
of title IV of the Higher Education Act of 1965 made during the
period when a sequestration order under section 254 is in
effect as required by section 252 or 253, origination fees
under sections 438(c)(2) and 455(c) of that Act shall each be
increased by 0.50 percentage point.
``(c) Foster Care and Adoption Assistance Programs.--Any
sequestration order shall make the reduction otherwise required
under the foster care and adoption assistance programs
(established by part E of title IV of the Social Security Act)
only with respect to payments and expenditures made by States
in which increases in foster care maintenance payment rates or
adoption assistance payment rates (or both) are to take effect
during the fiscal year involved, and only to the extent that
the required reduction can be accomplished by applying a
uniform percentage reduction to the Federal matching payments
that each such State would otherwise receive under section 474
of that Act (for such fiscal year) for that portion of the
State's payments attributable to the increases taking effect
during that year. No State's matching payments from the
Government for foster care maintenance payments or for adoption
assistance maintenance payments may be reduced by a percentage
exceeding the applicable domestic sequestration percentage. No
State may, after the date of the enactment of this Act, make
any change in the timetable for making payments under a State
plan approved under part E of title IV of the Social Security
Act which has the effect of changing the fiscal year in which
expenditures under such part are made.
``(d) Low-Income Programs.--(1) Benefit payments or payments
to States or other entities for the programs listed in
paragraph (2) shall not be reduced by more than 2 percent under
any sequestration order. When reduced under an end-of-session
sequestration order, those benefit reductions shall occur
starting with the payment made at the start of January. When
reduced under a within-session sequestration order, those
benefit reductions shall occur starting with the next periodic
payment.
``(2) The programs referred to in paragraph (1) are the
following:
``Child Nutrition (12-3539-0-1-605).
``Food Stamp Programs (12-3505-0-1-605).
``Grants to States for Medicaid (75-0512-0-1-551).
``State Children's Health Insurance Fund (75-0515-0-
1-551).
``Supplemental Security Income Program (75-0406-0-1-
609).
``Temporary Assistance for Needy Families (75-1552-0-
1-609).
``Special supplemental nutrition program for women,
infants, and children (WIC) (12-3510-0-1-605).
``(e) Veterans' Medical Care.--The maximum permissible
reduction in budget authority for Veterans' medical care (36-
0160-0-1-703) for any fiscal year, pursuant to an order issued
under section 254, shall be 2 percent.
``(f) Federal Retirement Programs.--
``(1) For each of the programs listed in paragraph
(2) and except as provided in paragraph (3), monthly
(or other periodic) benefit payments shall be reduced
by the uniform percentage applicable to direct spending
sequestrations for such programs, which shall in no
case exceed 2 percent under any sequestration order.
When reduced under an end-of-session sequestration
order, those benefit reductions shall occur starting
with the payment made at the start of January or 7
weeks after the order is issued, whichever is later.
When reduced under a within-session sequestration
order, those benefit reductions shall occur starting
with the next periodic payment.
``(2) The programs subject to paragraph (1) are:
``Central Intelligence Agency Retirement and
Disability Fund (56-3400-0-1-054).
``Comptrollers General Retirement System (05-
0107-0-1-801).
``Judicial Officers' Retirement Fund (10-
8122-0-7-602).
``Claims Judges' Retirement Fund (10-8124-0-
7-602).
``Pensions for former Presidents (47-0105-0-
1-802).
``National Oceanic and Atmospheric
Administration Retirement (13-1450-0-1-306).
``Railroad Industry Pension Fund (60-8011-0-
7-601).
``Retired pay, Coast Guard (70-0602-0-1-403).
``Retirement pay and medical benefits for
commissioned officers, Public Health Service
(75-0379-0-1-551).
``Payments to Civil Service Retirement and
Disability Fund (24-0200-0-1-805).
``Payments to the Foreign Service Retirement
and Disability Fund (72-1036-0-1-153).
``Payments to Judiciary Trust Funds (10-0941-
0-1-752).
``(g) Veterans Programs.--To achieve the total percentage
reduction required by any order issued under this part, the
percentage reduction that shall apply to payments under the
following programs shall in no event exceed 2 percent:
``Canteen Service Revolving Fund (36-4014-0-3-705).
``Medical Center Research Organizations (36-4026-0-3-
703).
``Disability Compensation Benefits (36-0102-0-1-701).
``Education Benefits (36-0137-0-1-702).
``Vocational Rehabilitation and Employment Benefits
(36-0135-0-1-702).
``Pensions Benefits (36-0154-0-1-701).
``Burial Benefits (36-0139-0-1-701).
``Guaranteed Transitional Housing Loans For Homeless
Veterans Program Account (36-1119-0-1-704).
``Housing Direct Loan Financing Account (36-4127-0-1-
704).
``Housing Guaranteed Loan Financing Account (36-4129-
0-3-704).
``Vocational Rehabilitation and Education Direct Loan
Financing Account (36-4259-0-3-702).
``(h) Military Health Care and Retirement.--To achieve the
total percentage reduction in military retirement required by
any order issued under this part, the percentage reduction that
shall apply to payments under the Military retirement fund (97-
8097-0-7-602), payments to the military retirement fund (97-
0040-0-1-054), and the Defense Health Program (97-0130-0-1-051)
shall in no event exceed 2 percent.
``(i) Medicare Program.--
``(1) Calculation of reduction in individual payment
amounts.--To achieve the total percentage reduction in
those programs required by any order issued under this
part, the percentage reduction that shall apply to
payments under the health insurance programs under
title XVIII of the Social Security Act (other than
payments described in section 255(a)(2)) that are
subject to such order for services furnished after any
sequestration order is issued shall be such that the
reduction made in payments under that order shall
achieve the required total percentage reduction in
those payments for that fiscal year as determined on a
12-month basis. However, the percentage reduction under
any such program shall in no case exceed 2 percent
under any sequestration order.
``(2) Timing of application of reductions.--If a
reduction is made under paragraph (1) in payment
amounts pursuant to a sequestration order, the
reduction shall be applied to payment for services
furnished after the effective date of the order.
``(3) No increase in beneficiary charges in
assignment-related cases.--If a reduction in payment
amounts is made under paragraph (1) for services for
which payment under part B of title XVIII of the Social
Security Act is made on the basis of an assignment
described in section 1842(b)(3)(B)(ii), in accordance
with section 1842(b)(6)(B), or under the procedure
described in section 1870(f)(1) of such Act, the person
furnishing the services shall be considered to have
accepted payment of the reasonable charge for the
services, less any reduction in payment amount made
pursuant to a sequestration order, as payment in full.
``(4) Application to parts c and d.--The reductions
otherwise required under parts C and D of title XVIII
of the Social Security Act with respect to a fiscal
year shall be applied to the calendar year that begins
after the end of the fiscal year to which the
applicable sequestration order applies.
``(j) Federal Pay.--
``(1) In general.--For purposes of any order issued
under section 254, new budget authority to pay Federal
personnel shall be reduced by the applicable uniform
percentage, but no sequestration order may reduce or
have the effect of reducing the rate of pay to which
any individual is entitled under any statutory pay
system (as increased by any amount payable under
section 5304 of title 5, United States Code, or section
302 of the Federal Employees Pay Comparability Act of
1990) or the rate of any element of military pay to
which any individual is entitled under title 37, United
States Code, or any increase in rates of pay which is
scheduled to take effect under section 5303 of title 5,
United States Code, section 1009 of title 37, United
States Code, or any other provision of law.
``(2) Definitions.--For purposes of this subsection:
``(A) The term `statutory pay system' shall
have the meaning given that term in section
5302(1) of title 5, United States Code.
``(B) The term `elements of military pay'
means--
``(i) the elements of compensation of
members of the uniformed services
specified in section 1009 of title 37,
United States Code,
``(ii) allowances provided members of
the uniformed services under sections
403a and 405 of such title, and
``(iii) cadet pay and midshipman pay
under section 203(c) of such title.
``(C) The term `uniformed services' shall
have the meaning given that term in section
101(3) of title 37, United States Code.
``(k) Child Support Enforcement Program.--Any sequestration
order shall accomplish the full amount of any required
reduction in expenditures under sections 455 and 458 of the
Social Security Act by reducing the Federal matching rate for
State administrative costs under such program, as specified
(for the fiscal year involved) in section 455(a) of such Act,
to the extent necessary to reduce such expenditures by that
amount.
``(l) Extended Unemployment Compensation.--(1) A State may
reduce each weekly benefit payment made under the Federal-State
Extended Unemployment Compensation Act of 1970 for any week of
unemployment occurring during any period with respect to which
payments are reduced under an order issued under this title by
a percentage not to exceed the percentage by which the Federal
payment to the State under section 204 of such Act is to be
reduced for such week as a result of such order.
``(2) A reduction by a State in accordance with subparagraph
(A) shall not be considered as a failure to fulfill the
requirements of section 3304(a)(11) of the Internal Revenue
Code of 1954.
``(m) Commodity Credit Corporation.--
``(1) Powers and authorities of the commodity credit
corporation.--This title shall not restrict the
Commodity Credit Corporation in the discharge of its
authority and responsibility as a corporation to buy
and sell commodities in world trade, to use the
proceeds as a revolving fund to meet other obligations
and otherwise operate as a corporation, the purpose for
which it was created.
``(2) Reduction in payments made under contracts.--
(A) Payments and loan eligibility under any contract
entered into with a person by the Commodity Credit
Corporation prior to the time any sequestration order
has been issued shall not be reduced by an order
subsequently issued. Subject to subparagraph (B), after
any sequestration order is issued for a fiscal year,
any cash payments made by the Commodity Credit
Corporation--
``(i) under the terms of any one-year
contract entered into in or after such fiscal
year and after the issuance of the order; and
``(ii) out of an entitlement account,
to any person (including any producer, lender, or
guarantee entity) shall be subject to reduction under
the order.
``(B) Each contract entered into with producers or
producer cooperatives with respect to a particular crop
of a commodity and subject to reduction under
subparagraph (A) shall be reduced in accordance with
the same terms and conditions. If some, but not all,
contracts applicable to a crop of a commodity have been
entered into prior to the issuance of any sequestration
order, the order shall provide that the necessary
reduction in payments under contracts applicable to the
commodity be uniformly applied to all contracts for
succeeding crops of the commodity, under the authority
provided in paragraph (3).
``(3) Delayed reduction in outlays permissible.--
Notwithstanding any other provision of this title, if
any sequestration order is issued with respect to a
fiscal year, any reduction under the order applicable
to contracts described in paragraph (2) may provide for
reductions in outlays for the account involved to occur
in the fiscal years following the fiscal year to which
the order applies.
``(4) Uniform percentage rate of reduction and other
limitations.--All reductions described in paragraph (2)
that are required to be made in connection with any
sequestration order with respect to a fiscal year--
``(A) shall be made so as to ensure that
outlays for each program, project, activity, or
account involved are reduced by a percentage
rate that is uniform for all such programs,
projects, activities, and accounts, and may not
be made so as to achieve a percentage rate of
reduction in any such item exceeding the rate
specified in the order; and
``(B) with respect to commodity price support
and income protection programs, shall be made
in such manner and under such procedures as
will attempt to ensure that--
``(i) uncertainty as to the scope of
benefits under any such program is
minimized;
``(ii) any instability in market
prices for agricultural commodities
resulting from the reduction is
minimized; and
``(iii) normal production and
marketing relationships among
agricultural commodities (including
both contract and non-contract
commodities) are not distorted.
In meeting the criterion set out in clause
(iii) of subparagraph (B) of the preceding
sentence, the President shall take into
consideration that reductions under an order
may apply to programs for two or more
agricultural commodities that use the same type
of production or marketing resources or that
are alternative commodities among which a
producer could choose in making annual
production decisions.
``(5) Certain authority not to be limited.--Nothing
in this title shall limit or reduce in any way any
appropriation that provides the Commodity Credit
Corporation with funds to cover the Corporation's net
realized losses.
``(n) Postal Service Fund.--Notwithstanding any other
provision of law, any sequestration of the Postal Service Fund
shall be accomplished by a payment from that Fund to the
General Fund of the Treasury, and the Postmaster General of the
United States shall make the full amount of that payment during
the fiscal year to which the presidential sequestration order
applies.
``(o) Effects of Sequestration.--The effects of sequestration
shall be as follows:
``(1) Budgetary resources sequestered from any
account other than an entitlement trust, special, or
revolving fund account shall revert to the Treasury and
be permanently canceled.
``(2) Except as otherwise provided, the same
percentage sequestration shall apply to all programs,
projects, and activities within a budget account (with
programs, projects, and activities as delineated in the
appropriation Act or accompanying report for the
relevant fiscal year covering that account, or for
accounts not included in appropriation Acts, as
delineated in the most recently submitted President's
budget).
``(3) Administrative regulations or similar actions
implementing a sequestration shall be made within 120
days of the sequestration order. To the extent that
formula allocations differ at different levels of
budgetary resources within an account, program,
project, or activity, the sequestration shall be
interpreted as producing a lower total appropriation,
with that lower appropriation being obligated as though
it had been the pre-sequestration appropriation and no
sequestration had occurred.
``(4) Except as otherwise provided, obligations in
sequestered direct spending accounts shall be reduced
in the fiscal year in which a sequestration occurs and
in all succeeding fiscal years.
``(5) If an automatic spending increase is
sequestered, the increase (in the applicable index)
that was disregarded as a result of that sequestration
shall not be taken into account in any subsequent
fiscal year.
``(6) Except as otherwise provided, sequestration in
accounts for which obligations are indefinite shall be
taken in a manner to ensure that obligations in the
fiscal year of a sequestration and succeeding fiscal
years are reduced, from the level that would actually
have occurred, by the applicable sequestration
percentage.''.
(b) Conforming Amendment.--The table of contents set forth in
250(c) of the Balanced Budget and Emergency Deficit Control Act
of 1985 is amended by amending the item relating to section 256
to read as follows:
``Sec. 256. Exceptions, limitations, and special rules.''.
SEC. 204. TECHNICAL AND CONFORMING AMENDMENTS.
The Balanced Budget and Emergency Deficit Control Act of 1985
is amended as follows:
(1) Section 251(a)(1) is amended by inserting ``,
section 252A,'' after ``section 252''.
(2) Section 254(c)(4)(B) is amended by inserting ``or
section 252A'' after ``section 252''.
(3) Section 254(c) is amended by redesignating
paragraph (5) as paragraph (6) and by inserting after
paragraph (4) the following new paragraph:
``(5) Direct spending control sequestration
reports.--The preview reports shall set forth, for the
current year and the budget year, estimates for each of
the following:
``(A) The total level of direct spending for
all programs, projects, and activities
(excluding social security).
``(B) The sequestration percentage or (if the
required sequestration percentage is greater
than the maximum allowable percentage for
medicare) percentages necessary to comply with
section 252A.''.
(4) Section 254(f) is amended by redesignating
paragraphs (4) and (5) as paragraphs (5) and (6) and by
inserting after paragraph (3) the following new
paragraph:
``(4) Direct spending control sequestration
reports.--The final reports shall contain all the
information required in the direct spending control
sequestration preview reports. In addition, these
reports shall contain, for the budget year, for each
account to be sequestered, estimates of the baseline
level of sequesterable budgetary resources and
resulting outlays and the amount of budgetary resources
to be sequestered and resulting outlay reductions. The
reports shall also contain estimates of the effects on
outlays of the sequestration in each outyear for direct
spending programs.''.
(5) Section 258C(a)(1) is amended by inserting ``,
252A,'' after ``section 252''.
TITLE III--LONG-TERM UNFUNDED OBLIGATIONS AND OTHER AMENDMENTS
SEC. 301. LONG-TERM UNFUNDED OBLIGATIONS.
(a) In General.--Title IV of the Congressional Budget Act of
1974 is amended by adding at the end the following:
PART C--LONG-TERM UNFUNDED OBLIGATIONS
``SEC. 441. ANALYSIS OF LONG-TERM UNFUNDED OBLIGATIONS.
``Beginning in fiscal year 2006, the President's budget shall
include an analysis of long-term unfunded obligations. This
analysis shall include:
``(1) An analysis of the impact of long-term unfunded
obligations in applicable entitlement programs on the
long-term level of unified budget outlays and the
unified budget surplus or deficit, in relation to the
projected level of the Gross Domestic Product.
``(2) A report on the impact of legislation enacted
during the previous session of Congress that increases
the long-term unfunded obligation in any applicable
group of entitlement program.
``(3) An analysis of the impact of legislation
proposed in the President's budget on the long-term
unfunded obligation in any applicable entitlement
program.
``SEC. 442. STANDARD FOR DETERMINING INCREASE IN LONG-TERM UNFUNDED
OBLIGATION.
``For the purpose of this part, legislation shall be
considered to increase the long-term unfunded obligation of an
applicable group of entitlement programs if it either--
``(1) increases the excess of the discounted present
value of the expenditures of programs in the group
above the discounted present value of the dedicated
receipts of programs in the group over a long-term
estimating period by more than an applicable threshold;
or
``(2) increases the dollar level of the expenditures
of programs in the group above the dedicated receipts
of programs in the group above the dedicated receipts
of programs in the group in the last year of the
estimating period by more than the applicable
threshold.
``SEC. 443. LONG-TERM UNFUNDED OBLIGATION ANALYSES BY CONGRESSIONAL
BUDGET OFFICE.
The Director of the Congressional Budget Office shall, to the
extent practicable, prepare for each bill or resolution of a
public character reported by any committee of the House of
Representatives or the Senate (except the Committee on
Appropriations of each House), and submit to such committee--
``(1) an estimate of any increase of the long-term
unfunded obligation of any applicable entitlement
program which would be incurred in carrying out such
bill or resolution as measured by the increase of the
excess of the discounted present value of the
expenditures of such program above the discounted
present value of the dedicated receipts of such program
over a long-term estimating period by more than an
applicable threshold; and
``(2) an estimate of any increase in the dollar level
of the expenditures of such program above the dedicated
receipts of such program above the dedicated receipts
of such program in the last year of the estimating
period by more than the applicable threshold.
The estimates and description so submitted shall be included in
the report accompanying such bill or resolution if timely
submitted to such committee before such report is filed.
``SEC. 444. DEFINITIONS.
``As used in this part--
``(1) the term `applicable entitlement program' shall
be defined as any one of the following programs:
``(A) Old Age, Survivors, and Disability
Insurance.
``(B) Medicare (combined hospital insurance
and supplemental medical insurance).
``(C) Civilian retirement and disability
(combined Civil Service Retirement System and
Federal Employees Retirement System).
``(D) Foreign Service Retirement and
Disability (combined Foreign Service Retirement
and Disability System and Foreign Service
Pension System).
``(E) Retired Employees Health Benefits.
``(F) Military Retirement System.
``(G) Uniformed Services Retiree Health Care
System.
``(H) Railroad Retirement System (combined
Rail Industry Pension Fund, Social Security
Equivalent Benefit Account, and National
Railroad Retirement Investment Trust).
``(I) Supplemental Security Income (SSI).
``(J) For estimates made on or after January
1, 2006, veterans disability compensation.
``(K) Any other entitlement program with
regularly available long-term estimates.
``(2) The term `entitlement program with regularly
available long-term estimates' means a program for
which the Director of the Congressional Budget Office,
in consultation with the Committees on the Budget of
the House of Representatives and the Senate and the
Director of the Office of Management and Budget, has
determined that it is feasible to make long-term
estimates of expenditures and dedicated receipts based
on explicit demographic, economic, and other estimating
assumptions. The Director shall notify the House and
Senate Committees on the Budget in writing, whenever he
or she makes such a determination.
``(3) The term `applicable group of entitlement
programs' shall be defined as any of the following:
``(A) Old Age, Survivors, and Disability
Insurance.
``(B) All applicable entitlement programs
except Old Age, Survivors, and Disability
Insurance.
``(4) The term `long-term estimating period' shall be
defined as 75 years, starting with the current year,
for all applicable entitlement programs except for Old
Age, Survivors, and Disability Insurance. For Old Age,
Survivors, and Disability Insurance, the term shall be
defined as the infinite period of years utilized in the
most recent annual report of the Board of Trustees
provided pursuant to section 201(c)(2) of the Social
Security Act.
``(5) The term `last year of the estimating period'
shall be defined as the 75th year of the long-term
estimating period.
``(6) The term `dedicated receipts' shall be defined,
for all applicable entitlement programs other than
Medicare, as taxes and fees received from the public,
payments received from Federal agencies on behalf of
Federal agency employees who are participants in the
program, transfers received by the program under
section 7(c)(2) of the Railroad Retirement Act of 1974
(45 U.S.C. 231f(c)(2)), and transfers from the general
fund of amounts equivalent to income tax receipts under
section 86 of the Internal Revenue Code. Dedicated
receipts shall not include payments from the general
fund to amortize a program's unfunded liability or
payments of interest on a program's trust fund
holdings. For Medicare, `dedicated receipts' shall be
defined according to section 801(c)(3) of the Medicare
Prescription Drug, Improvement, and Modernization Act
of 2003.
``(7) The term `expenditures' shall be defined, for
all applicable entitlement programs other than
Medicare, to include benefit payments, administrative
expenses to the extent paid from a dedicated fund, and
transfers to other programs made under section 7(c)(2)
of the Railroad Retirement Act of 1974 (45 U.S.C.
231f(c)(2)). For Medicare, `expenditures' shall be
defined according to section 801(c)(4) of the Medicare
prescription Drug, Improvement, and Modernization Act
of 2003.
``(8) The term `applicable threshold' shall be
defined as:
``(A) For a group of applicable entitlement
programs over a long-term estimating period--
``(i) 0.02 percent of the present
value of the taxable payroll of the
group of programs over the estimating
period, for legislation affecting Old
Age, Survivors, and Disability
Insurance or Medicare; and
``(ii) 1 percent of the present value
of the expenditures over the estimating
period of the programs in the group
that are affected by the legislation.
``(B) For a group of applicable entitlement
programs in the last year of the estimating
period--
``(i) 0.02 percent of the taxable
payroll of the group of programs in
that year, for legislation affecting
Old Age, Survivors, and Disability
Insurance or Medicare;
``(ii) 0.01 percent of Gross Domestic
Product in that year; or
``(iii) 1 percent of the expenditures
in that year of the programs in the
group that are affected by the
legislation.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by adding after the item
relating to section 428 the following:
``Part C--Long-Term Unfunded Obligations
``Sec. 441. Analysis of long-term unfunded obligations.
``Sec. 442. Standard for determining increase in long-term unfunded
obligation.
``Sec. 443. Long-term unfunded obligation analyses by congressional
budget office.
``Sec. 444. Definitions.
____________________________________________________
5. An Amendment To Be Offered by Representative Hensarling of Texas, or
His Designee, Debatable for 10 Minutes
At the end, add the following new section:
SEC. . GOVERNMENT SHUTDOWN PROTECTION.
(a) In General.--Chapter 13 of title 31, United States Code,
is amended by inserting after section 1310 the following new
section:
``Sec. 1311. Continuing appropriations
``(a)(1) If any regular appropriation bill for a fiscal year
does not become law before the beginning of such fiscal year or
a joint resolution making continuing appropriations is not in
effect, there are appropriated, out of any money in the
Treasury not otherwise appropriated, and out of applicable
corporate or other revenues, receipts, and funds, such sums as
may be necessary to continue any project or activity for which
funds were provided in the preceding fiscal year--
``(A) in the corresponding regular appropriation Act
for such preceding fiscal year; or
``(B) if the corresponding regular appropriation bill
for such preceding fiscal year did not become law, then
in a joint resolution making continuing appropriations
for such preceding fiscal year.
``(2) Appropriations and funds made available, and authority
granted, for a project or activity for any fiscal year pursuant
to this section shall be at a rate of operations not in excess
of the lower of--
``(A) the rate of operations provided for in the
regular appropriation Act providing for such project or
activity for the preceding fiscal year;
``(B) in the absence of such an Act, the rate of
operations provided for such project or activity
pursuant to a joint resolution making continuing
appropriations for such preceding fiscal year;
``(C) the rate of operations provided for in the
regular appropriation bill as passed by the House of
Representatives or the Senate for the fiscal year in
question, except that the lower of these two versions
shall be ignored for any project or activity for which
there is a budget request if no funding is provided for
that project or activity in either version; or
``(D) the annualized rate of operations provided for
in the most recently enacted joint resolution making
continuing appropriations for part of that fiscal year
or any funding levels established under the provisions
of this Act.
``(3) Appropriations and funds made available, and authority
granted, for any fiscal year pursuant to this section for a
project or activity shall be available for the period beginning
with the first day of a lapse in appropriations and ending with
the earlier of--
``(A) the date on which the applicable regular
appropriation bill for such fiscal year becomes law
(whether or not such law provides for such project or
activity) or a continuing resolution making
appropriations becomes law, as the case may be; or
``(B) the last day of such fiscal year.
``(b) An appropriation or funds made available, or authority
granted, for a project or activity for any fiscal year pursuant
to this section shall be subject to the terms and conditions
imposed with respect to the appropriation made or funds made
available for the preceding fiscal year, or authority granted
for such project or activity under current law.
``(c) Appropriations and funds made available, and authority
granted, for any project or activity for any fiscal year
pursuant to this section shall cover all obligations or
expenditures incurred for such project or activity during the
portion of such fiscal year for which this section applies to
such project or activity.
``(d) Expenditures made for a project or activity for any
fiscal year pursuant to this section shall be charged to the
applicable appropriation, fund, or authorization whenever a
regular appropriation bill or a joint resolution making
continuing appropriations until the end of a fiscal year
providing for such project or activity for such period becomes
law.
``(e) This section shall not apply to a project or activity
during a fiscal year if any other provision of law (other than
an authorization of appropriations)--
``(1) makes an appropriation, makes funds available,
or grants authority for such project or activity to
continue for such period; or
``(2) specifically provides that no appropriation
shall be made, no funds shall be made available, or no
authority shall be granted for such project or activity
to continue for such period.
``(f) For purposes of this section, the term `regular
appropriation bill' means any annual appropriation bill making
appropriations, otherwise making funds available, or granting
authority, for any of the following categories of projects and
activities:
``(1) Agriculture, rural development, Food and Drug
Administration, and related agencies programs.
``(2) The Departments of Commerce, Justice, and
State, the Judiciary, and related agencies.
``(3) The Department of Defense.
``(4) The government of the District of Columbia and
other activities chargeable in whole or in part against
the revenues of the District.
``(5) Energy and water development.
``(6) Foreign operations, export financing, and
related programs.
``(7) The Department of Homeland Security.
``(8) The Department of the Interior and related
agencies.
``(9) The Departments of Labor, Health and Human
Services, and Education, and related agencies.
``(10) The Legislative Branch.
``(11) Military construction, family housing, and
base realignment and closure for the Department of
Defense.
``(12) The Departments of Transportation and
Treasury, and independent agencies.
``(13) The Departments of Veterans Affairs and
Housing and Urban Development, and sundry independent
agencies, boards, commissions, corporations, and
offices.''.
(b) Clerical Amendment.--The analysis of chapter 13 of title
31, United States Code, is amended by inserting after the item
relating to section 1310 the following new item:
``1311. Continuing appropriations.''.
____________________________________________________
6. An Amendment To Be Offered by Representative Kirk of Illinois, or
His Designee, Debatable for 10 Minutes
At the end, add the following new section:
SEC. . ANNUAL CBO REPORTS ON ENTITLEMENT SPENDING.
Section 202(e) of the Congressional Budget Act of 1974 is
amended by adding at the end the following new paragraph:
``(4) On or before February 15 of each year, the
Director shall submit to the Committees on the Budget
of the House of Representatives and the Senate, a
report for the fiscal year ending on September 30 of
the preceding year, with respect to entitlement
spending, including (A) a comparison of actual spending
for entitlements, on an account by account basis, with
projected spending for such entitlements assumed in the
concurrent resolution of the budget for that fiscal
year and (B) an identification of those entitlements
for which the actual spending exceeded the projected
spending.''.
----------
7. An Amendment To Be Offered by Representative Ryan of Wisconsin, or
His Designee, Debatable for 10 Minutes
At the end, add the following new sections:
SEC. . JOINT BUDGET RESOLUTIONS.
(a) Definitions.--Paragraph (4) of section 3 of the
Congressional Budget Act of 1974 is amended to read as follows:
``(4) the term `joint resolution on the budget'
means--
``(A) a joint resolution setting forth the
congressional budget for the United States
Government for a fiscal year as provided in
section 301; and
``(B) any other joint resolution revising the
congressional budget for the United States
Government for a fiscal year as described in
section 304.''.
(b) Joint Resolution on the Budget.--(1) Section 301(a) of
the Congressional Budget Act of 1974 is amended by striking
``concurrent resolution'' each place it appears including in
the caption and inserting ``joint resolution''.
(2) Section 301(b) of such Act is amended by striking
``concurrent resolution'' each place it appears including in
the caption and inserting ``joint resolution''.
(3) Section 301(c) of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(4) Section 301(e) of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(5) Section 301(f) of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(6) Section 301(g) of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(7) Section 301(h) of such Act is amended by striking
``concurrent resolution'' and inserting ``joint resolution''.
(8) Section 301(i) of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(9) The section heading of section 301 of such Act is amended
by striking ``ANNUAL ADOPTION OF CONCURRENT'' and inserting
``ANNUAL ADOPTION OF JOINT''.
(10) The table of contents set forth in section 1(b) of the
Congressional Budget and Impoundment Control Act of 1974 is
amended by striking ``Annual adoption of the concurrent'' in
the item relating to section 301 and inserting ``Annual
adoption of the joint''.
(11) Section 302 of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(12) Section 303 of such Act, including the heading, is
amended by striking ``concurrent resolution'' each place it
appears and inserting ``joint resolution''.
(13) The table of contents set forth in section 1(b) of the
Congressional Budget and Impoundment Control Act of 1974 is
amended by striking ``Concurrent'' in the item relating to
section 303 and inserting ``Joint''.
(14) Section 304 of such Act is amended by striking
``concurrent resolution'', including in the heading, each place
it appears and inserting ``joint resolution''.
(15) The table of contents set forth in section 1(b) of the
Congressional Budget and Impoundment Control Act of 1974 is
amended by striking ``Concurrent'' in the item relating to
section 304 and inserting ``Joint''.
(16) Section 305 of such Act is amended by striking
``concurrent resolution'', including in the heading, each place
it appears and inserting ``joint resolution''.
(17) Section 308 of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(18) Section 310 of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
(19) Section 311 of such Act is amended by striking
``concurrent resolution'' each place it appears and inserting
``joint resolution''.
SEC. . BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE CONSIDERED;
FALL-BACK PROCEDURES IF PRESIDENT VETOES JOINT
BUDGET RESOLUTION.
(a) Amendments to Section 302.--Section 302(a) of the
Congressional Budget Act of 1974 is amended by striking
paragraph (5).
(b) Amendments to Section 303 and Conforming Amendments.--(1)
Section 303 of the Congressional Budget Act of 1974 is
amended--
(A) in subsection (b), by striking paragraph (2), by
inserting ``or'' at the end of paragraph (1), and by
redesignating paragraph (3) as paragraph (2); and
(B) by striking its section heading and inserting the
following new section heading: ``consideration of
budget-related legislation before budget becomes law''.
(2) Section 302(g)(1) of the Congressional Budget Act of 1974
is amended by striking ``and, after April 15, section 303(a)''.
(3)(A) Section 904(c)(1) of the Congressional Budget Act of
1974 is amended by inserting ``303(a),'' before ``305(b)(2),''.
(B) Section 904(d)(2) of the Congressional Budget Act of 1974
is amended by inserting ``303(a),'' before ``305(b)(2),''.
(C) Subsection (e) of section 904 of the Congressional Budget
Act of 1974 is repealed.
(c) Expedited Procedures Upon Veto of Joint Resolution on the
Budget.--(1) Title III of the Congressional Budget Act of 1974
is amended by adding after section 315 the following new
section:
``EXPEDITED PROCEDURES UPON VETO OF JOINT RESOLUTION ON THE BUDGET
``Sec. 316. (a) Special Rule.--If the President vetoes a
joint resolution on the budget for a fiscal year, the majority
leader of the House of Representatives or Senate (or his
designee) may introduce a concurrent resolution on the budget
or joint resolution on the budget for such fiscal year. If the
Committee on the Budget of either House fails to report such
concurrent or joint resolution referred to it within five
calendar days (excluding Saturdays, Sundays, or legal holidays
except when that House of Congress is in session) after the
date of such referral, the committee shall be automatically
discharged from further consideration of such resolution and
such resolution shall be placed on the appropriate calendar.
``(b) Procedure in the House of Representatives and the
Senate.--
``(1) Except as provided in paragraph (2), the
provisions of section 305 for the consideration in the
House of Representatives and in the Senate of joint
resolutions on the budget and conference reports
thereon shall also apply to the consideration of
concurrent resolutions on the budget introduced under
subsection (a) and conference reports thereon.
``(2) Debate in the Senate on any concurrent
resolution on the budget or joint resolution on the
budget introduced under subsection (a), and all
amendments thereto and debatable motions and appeals in
connection therewith, shall be limited to not more than
10 hours and in the House such debate shall be limited
to not more than 3 hours.
``(c) Contents of Concurrent Resolutions.--Any concurrent
resolution on the budget introduced under subsection (a) shall
be in compliance with section 301.
``(d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a
concurrent resolution on the budget described in subsection (a)
is agreed to, then the aggregates, allocations, and
reconciliation directives (if any) contained in the report
accompanying such concurrent resolution or in such concurrent
resolution shall be considered to be the aggregates,
allocations, and reconciliation directives for all purposes of
sections 302, 303, and 311 for the applicable fiscal years and
such concurrent resolution shall be deemed to be a joint
resolution for all purposes of this title and the Rules of the
House of Representatives and any reference to the date of
enactment of a joint resolution on the budget shall be deemed
to be a reference to the date agreed to when applied to such
concurrent resolution.''.
(2) The table of contents set forth in section 1(b) of the
Congressional Budget and Impoundment Control Act of 1974 is
amended by inserting after the item relating to section 315 the
following new item:
``Sec. 316. Expedited procedures upon veto of joint resolution on the
budget.''.
(e) Limitation on Contents of Budget Resolutions.--Section
305 of the Congressional Budget Act of 1974 is amended by
adding at the end the following new subsection:
``(e) Limitation on Contents.--(1) It shall not be in order
in the House of Representatives or in the Senate to consider
any joint resolution on the budget or any amendment thereto or
conference report thereon that contains any matter referred to
in paragraph (2).
``(2) Any joint resolution on the budget or any amendment
thereto or conference report thereon that contains any matter
not permitted in section 301(a) or (b) shall not be treated in
the House of Representatives or the Senate as a budget
resolution under subsection (a) or (b) or as a conference
report on a budget resolution under subsection (c) of this
section.''.
----------
8. An Amendment To Be Offered by Representative Ryan of Wisconsin, or
His Designee, Debatable for 10 Minutes
At the end, add the following new sections:
SEC. . ESTABLISHMENT OF BUDGET PROTECTION MANDATORY ACCOUNT.
(a) Budget Protection Mandatory Account.--Title III of the
Congressional Budget Act of 1974 is amended by adding at the
end the following new sections:
``BUDGET PROTECTION MANDATORY ACCOUNT
``Sec. 316. (a) Establishment of Account.--The chairman of
the Committee on the Budget of the House of Representatives and
of the Senate shall each maintain an account to be known as the
`Budget Protection Mandatory Account'. The Account shall be
divided into entries corresponding to the House or Senate
committees, as applicable, that received allocations under
section 302(a) in the most recently adopted concurrent
resolution on the budget, except that it shall not include the
Committee on Appropriations of that House and each entry shall
consist of the `First Year Budget Protection Balance' and the
`Five Year Budget Protection Balance'.
``(b) Components.--Each entry shall consist only of amounts
credited to it under subsection (c). No entry of a negative
amount shall be made.
``(c) Crediting of Amounts to Account.--(1) Whenever a Member
or Senator, as the case may be, offers an amendment to a bill
that reduces the amount of mandatory budget authority provided
either under current law or proposed to be provided by the bill
under consideration, that Member or Senator may state the
portion of such reduction achieved in the first year covered by
the most recently adopted concurrent resolution on the budget
and in addition the portion of such reduction achieved in the
first five years covered by the most recently adopted
concurrent resolution on the budget that shall be--
``(A) credited to the First Year Budget Protection
Balance and the Five Year Budget Protection Balance in
the House or Senate, as applicable;
``(B) used to offset an increase in other new budget
authority;
``(C) allowed to remain within the applicable section
302(a) allocation; or
``(D) used to offset a decrease in receipts.
If no such statement is made, the amount of reduction in new
budget authority resulting from the amendment shall be credited
to the First Year Budget Protection Balance and the Five Year
Budget Protection Balance, as applicable, if the amendment is
agreed to.
``(2) Except as provided by paragraph (3), the chairman of
the Committee on the Budget of the House or Senate, as
applicable, shall, upon the engrossment of any bill, other than
an appropriation bill, by the House or Senate, as applicable,
credit to the applicable entry balances amounts of new budget
authority and outlays equal to the net amounts of reductions in
budget authority and in outlays resulting from amendments
agreed to by that House to that bill.
``(3) When computing the net amounts of reductions in budget
authority and in outlays resulting from amendments agreed to by
the House or Senate, as applicable, to a bill, the chairman of
the Committee on the Budget of that House shall only count
those portions of such amendments agreed to that were so
designated by the Members or Senators offering such amendments
as amounts to be credited to the First Year Budget Protection
Balance and the Five Year Budget Protection Balance, or that
fall within the last sentence of paragraph (1).
``(4) The chairman of the Committee on the Budget of the
House and of the Senate shall each maintain a running tally of
the amendments adopted reflecting increases and decreases of
budget authority in the bill as reported to its House. This
tally shall be available to Members or Senators during
consideration of any bill by that House.
``(d) Calculation of Lock-Box Savings in House and Senate.--
For the purposes of enforcing section 302(a), upon the
engrossment of any bill, other than an appropriation bill, by
the House or Senate, as applicable, the amount of budget
authority and outlays calculated pursuant to subsection (c)(3)
shall be counted against the 302(a) allocation provided to the
applicable committee or committees of that House which reported
the bill as if the amount calculated pursuant to subsection
(c)(3) was included in the bill just engrossed.
``(e) Definition.--As used in this section, the term
`appropriation bill' means any general or special appropriation
bill, and any bill or joint resolution making supplemental,
deficiency, or continuing appropriations through the end of
fiscal year 2005 or any subsequent fiscal year, as the case may
be.''.
SEC. . ESTABLISHMENT OF BUDGET PROTECTION DISCRETIONARY ACCOUNT.
``BUDGET PROTECTION DISCRETIONARY ACCOUNT
``Sec. 317. (a) Establishment of Account.--The chairman of
the Committee on the Budget of the House of Representatives and
of the Senate shall each maintain an account to be known as the
`Budget Protection Discretionary Account'. The Account shall be
divided into entries corresponding to the subcommittees of the
Committee on Appropriations of that House and each entry shall
consist of the `Budget Protection Balance'.
``(b) Components.--Each entry shall consist only of amounts
credited to it under subsection (c). No entry of a negative
amount shall be made.
``(c) Crediting of Amounts to Account.--(1) Whenever a Member
or Senator, as the case may be, offers an amendment to an
appropriation bill to reduce new budget authority in any
account, that Member or Senator may state the portion of such
reduction that shall be--
``(A) credited to the Budget Protection Balance;
``(B) used to offset an increase in new budget
authority in any other account;
``(C) allowed to remain within the applicable section
302(b) suballocation or
``(D) used to offset a decrease in receipts.
If no such statement is made, the amount of reduction in new
budget authority resulting from the amendment shall be credited
to the Budget Protection Balance, as applicable, if the
amendment is agreed to.
``(2) Except as provided by paragraph (3), the chairman of
the Committee on the Budget of the House or Senate, as
applicable, shall, upon the engrossment of any appropriation
bill by the House or Senate, as applicable, credit to the
applicable entry balances amounts of new budget authority and
outlays equal to the net amounts of reductions in budget
authority and in outlays resulting from amendments agreed to by
that House to that bill.
``(3) When computing the net amounts of reductions in new
budget authority and in outlays resulting from amendments
agreed to by the House or Senate, as applicable, to an
appropriation bill, the chairman of the Committee on the Budget
of that House shall only count those portions of such
amendments agreed to that were so designated by the Members
offering such amendments as amounts to be credited to the
Budget Protection Balance, or that fall within the last
sentence of paragraph (1).
``(4) The chairman of the Committee on the Budget of the
House and of the Senate shall each maintain a running tally of
the amendments adopted reflecting increases and decreases of
budget authority in the bill as reported to its House. This
tally shall be available to Members or Senators during
consideration of any bill by that House.
``(d) Calculation of Lock-Box Savings in House and Senate.--
(1) For the purposes of enforcing section 302(a), upon the
engrossment of any appropriation bill by the House or Senate,
as applicable, the amount of budget authority and outlays
calculated pursuant to subsection (c)(3) shall be counted
against the 302(a) allocation provided to the Committee on
Appropriations as if the amount calculated pursuant to
subsection (c)(3) was included in the bill just engrossed.
``(2) For purposes of enforcing section 302(b), upon the
engrossment of any appropriation bill by the House or Senate,
as applicable, the 302(b) allocation provided to the
subcommittee for the bill just engrossed shall be deemed to
have been reduced by the amount of budget authority and outlays
calculated, pursuant to subsection (c)(3).
``(e) Definition.--As used in this section, the term
`appropriation bill' means any general or special appropriation
bill, and any bill or joint resolution making supplemental,
deficiency, or continuing appropriations through the end of
fiscal year 2005 or any subsequent fiscal year, as the case may
be.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by inserting after the item
relating to section 315 the following new items:
``Sec. 316. Budget protection mandatory account.
``Sec. 317. Budget protection discretionary account.''.
SEC. . REVENUE ADJUSTMENT.
If an amendment is designated to be used to offset a decrease
in receipts for a fiscal year pursuant to section 316(c)(1)(D)
or section 317(c)(1)(D) of the Congressional Budget Act of
1974, then the applicable level of revenues for such fiscal
year for purposes of section 311(a) of such Act shall be
reduced by the amount of such amendment.
----------
9. An Amendment To Be Offered by Representative Ryan of Wisconsin, or
His Designee, Debatable for 10 Minutes
At the end, add the following new section:
SEC. . ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS.
(a) In General.--Part B of title X of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C. 681 et
seq.) is amended by redesignating sections 1013 through 1017 as
sections 1014 through 1018, respectively, and by inserting
after section 1012 the following new section:
``ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS
``Sec. 1013. (a) Proposed Rescission of Budget Authority
Identified as Wasteful Spending.--The President may propose, at
the time and in the manner provided in subsection (b), the
rescission of any budget authority provided in an appropriation
Act that he identifies as wasteful spending. If the President
proposes a rescission of budget authority, he may also propose
to reduce the appropriate discretionary spending limits for new
budget authority and outlays flowing therefrom set forth in
section 251(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 by an amount that does not exceed the
amount of the proposed rescission. Funds made available for
obligation under this procedure may not be proposed for
rescission again under this section.
``(b) Transmittal of Special Message.--
``(1) The President may transmit to Congress a
special message proposing to rescind amounts of budget
authority and include with that special message a draft
bill that, if enacted, would only rescind that budget
authority unless the President also proposes a
reduction in the appropriate discretionary spending
limits set forth in section 251(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985. That
bill shall clearly identify the amount of budget
authority that is proposed to be rescinded for each
program, project, or activity to which that budget
authority relates.
``(2) In the case of an appropriation Act that
includes accounts within the jurisdiction of more than
one subcommittee of the Committee on Appropriations,
the President in proposing to rescind budget authority
under this section shall send a separate special
message and accompanying draft bill for accounts within
the jurisdiction of each subcommittee.
``(3) Each special message shall specify, with
respect to the budget authority proposed to be
rescinded, the following:
``(A) The amount of budget authority which he
proposes to be rescinded.
``(B) Any account, department, or
establishment of the Government to which such
budget authority is available for obligation,
and the specific project or governmental
functions involved.
``(C) The reasons why the budget authority
should be rescinded, including why he considers
it to be wasteful spending.
``(D) To the maximum extent practicable, the
estimated fiscal, economic, and budgetary
effect (including the effect on outlays and
receipts in each fiscal year) of the proposed
rescission.
``(E) All facts, circumstances, and
considerations relating to or bearing upon the
proposed rescission and the decision to effect
the proposed rescission, and to the maximum
extent practicable, the estimated effect of the
proposed rescission upon the objects, purposes,
and programs for which the budget authority is
provided.
``(F) A reduction in the appropriate
discretionary spending limits set forth in
section 251(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985, if
proposed by the President.
``(c) Procedures for Expedited Consideration.--
``(1)(A) Before the close of the second legislative
day of the House of Representatives after the date of
receipt of a special message transmitted to Congress
under subsection (b), the majority leader or minority
leader of the House of Representatives shall introduce
(by request) the draft bill accompanying that special
message. If the bill is not introduced as provided in
the preceding sentence, then, on the third legislative
day of the House of Representatives after the date of
receipt of that special message, any Member of that
House may introduce the bill.
``(B) The bill shall be referred to the Committee on
Appropriations. The committee shall report the bill
without substantive revision and with or without
recommendation. The bill shall be reported not later
than the seventh legislative day of that House after
the date of receipt of that special message. If that
committee fails to report the bill within that period,
that committee shall be automatically discharged from
consideration of the bill, and the bill shall be placed
on the appropriate calendar.
``(C) A vote on final passage of the bill shall be
taken in the House of Representatives on or before the
close of the 10th legislative day of that House after
the date of the introduction of the bill in that House.
If the bill is passed, the Clerk of the House of
Representatives shall cause the bill to be engrossed,
certified, and transmitted to the Senate within one
calendar day of the day on which the bill is passed.
``(2)(A) A motion in the House of Representatives to
proceed to the consideration of a bill under this
section shall be highly privileged and not debatable.
An amendment to the motion shall not be in order, nor
shall it be in order to move to reconsider the vote by
which the motion is agreed to or disagreed to.
``(B) Debate in the House of Representatives on a
bill under this section shall not exceed 4 hours, which
shall be divided equally between those favoring and
those opposing the bill. A motion to further limit
debate shall not be debatable. It shall not be in order
to move to recommit a bill under this section or to
move to reconsider the vote by which the bill is agreed
to or disagreed to.
``(C) Appeals from decisions of the Chair relating to
the application of the Rules of the House of
Representatives to the procedure relating to a bill
under this section shall be decided without debate.
``(D) Except to the extent specifically provided in
the preceding provisions of this subsection,
consideration of a bill under this section shall be
governed by the Rules of the House of Representatives.
It shall not be in order in the House of
Representatives to consider any rescission bill
introduced pursuant to the provisions of this section
under a suspension of the rules or under a special
rule.
``(3) A bill transmitted to the Senate pursuant to
paragraph (1)(D) shall be referred to its Committee on
Appropriations. That committee shall report the bill
without substantive revision and with or without
recommendation. The bill shall be reported not later
than the seventh legislative day of the Senate after it
receives the bill. A committee failing to report the
bill within such period shall be automatically
discharged from consideration of the bill, and the bill
shall be placed upon the appropriate calendar.
``(4)(A) A motion in the Senate to proceed to the
consideration of a bill under this section shall be
privileged and not debatable. An amendment to the
motion shall not be in order, nor shall it be in order
to move to reconsider the vote by which the motion is
agreed to or disagreed to.
``(B) Debate in the Senate on a bill under this
section, and all debatable motions and appeals in
connection therewith (including debate pursuant to
subparagraph (C)), shall not exceed 10 hours. The time
shall be equally divided between, and controlled by,
the majority leader and the minority leader or their
designees.
``(C) Debate in the Senate or any debatable motion or
appeal in connection with a bill under this section
shall be limited to not more than 1 hour, to be equally
divided between, and controlled by, the mover and the
manager of the bill, except that in the event the
manager of the bill is in favor of any such motion or
appeal, the time in opposition thereto, shall be
controlled by the minority leader or his designee. Such
leaders, or either of them, may, from time under their
control of the passage of a bill, allot additional time
to any Senator during the consideration of any
debatable motion or appeal.
``(D) A motion in the Senate to further limit debate
on a bill under this section is not debatable. A motion
to recommit a bill under this section is not in order.
``(d) Amendment and Divisions Prohibited.--No amendment to a
bill considered under this section shall be in order in either
the House of Representatives or the Senate. It shall not be in
order to demand a division of the question in the House of
Representatives (or in a Committee of the Whole) or in the
Senate. No motion to suspend the application of this subsection
shall be in order in either House, nor shall it be in order in
either House to suspend the application of this subsection by
unanimous consent.
``(e) Requirement To Make Available for Obligation.--Any
amount of budget authority proposed to be rescinded in a
special message transmitted to Congress under subsection (b)
shall be made available for obligation on the day after the
date on which either House rejects the bill transmitted with
that special message.
``(f) Definitions.--For purposes of this section:
``(1) The term `appropriation Act' means any general
or special appropriation Act, and any Act or joint
resolution making supplemental, deficiency, or
continuing appropriations.
``(2) The term `legislative day' means, with respect
to either House of Congress, any day of session.
``(3) The term `rescind' means, with respect to an
appropriation Act, to reduce the amount of budget
authority appropriated in that Act, and reducing budget
authority shall include reducing obligation limitations
set forth in that Act.''.
(b) Exercise of Rulemaking Powers.--Section 904 of the
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is
amended--
(1) in subsection (a), by striking ``and 1017'' and
inserting ``1012, and 1017''; and
(2) in subsection (d), by striking ``section 1017''
and inserting ``sections 1012 and 1017''.
(c) Conforming Amendments.--
(1) Section 1011 of the Congressional Budget Act of
1974 (2 U.S.C. 682(5)) is amended by repealing
paragraphs (3) and (5) and by redesignating paragraph
(4) as paragraph (3).
(2) Section 1014 of such Act (2 U.S.C. 685) is
amended--
(A) in subsection (b)(1), by striking ``or
the reservation''; and
(B) in subsection (e)(1), by striking ``or a
reservation'' and by striking ``or each such
reservation''.
(3) Section 1015(a) of such Act (2 U.S.C. 686) is
amended by striking ``is to establish a reserve or'',
by striking ``the establishment of such a reserve or'',
and by striking ``reserve or'' each other place it
appears.
(4) Section 1017 of such Act (2 U.S.C. 687) is
amended--
(A) in subsection (a), by striking
``rescission bill introduced with respect to a
special message or'';
(B) in subsection (b)(1), by striking
``rescission bill or'', by striking ``bill or''
the second place it appears, by striking
``rescission bill with respect to the same
special message or'', and by striking ``, and
the case may be,'';
(C) in subsection (b)(2), by striking ``bill
or'' each place it appears;
(D) in subsection (c), by striking
``rescission'' each place it appears and by
striking ``bill or'' each place it appears;
(E) in subsection (d)(1), by striking
``rescission bill or'' and by striking ``, and
all amendments thereto (in the case of a
rescission bill)'';
(F) in subsection (d)(2)--
(i) by striking the first sentence;
(ii) by amending the second sentence
to read as follows: ``Debate on any
debatable motion or appeal in
connection with an impoundment
resolution shall be limited to 1 hour,
to be equally divided between, and
controlled by, the mover and the
manager of the resolution, except that
in the event that the manager of the
resolution is in favor of any such
motion or appeal, the time in
opposition thereto shall be controlled
by the minority leader or his
designee.'';
(iii) by striking the third sentence;
and
(iv) in the fourth sentence, by
striking ``rescission bill or'' and by
striking ``amendment, debatable
motion,'' and by inserting `debatable
motion';
(G) in paragraph (d)(3), by striking the
second and third sentences; and
(H) by striking paragraphs (4), (5), (6), and
(7) of paragraph (d).
(d) Clerical Amendments.--The table of sections for subpart B
of title X of the Congressional Budget and Impoundment Control
Act of 1974 is amended by redesignating the item relating to
sections 1014 through 1018 as items 1015 through 1019,
respectively, and by inserting after the item relating to
section 1012 the following new item:
``Sec. 1013. Enhanced consideration of certain proposed rescissions.''.
____________________________________________________
10. An Amendment To Be Offered by Representative Young of Florida, or
His Designee, Debatable for 10 Minutes
At the appropriate place in the bill, insert the following
new section:
Sec. . Special Rule for Fiscal Year 2005.--For purposes
of ensuring the full funding of the transportation guarantees
in fiscal year 2005, the amounts provided for fiscal year 2005
for discretionary new budget authority and outlays allocated to
the House Committee on Appropriations as though under section
302(a) of the Congressional Budget Act of 1974 shall be
increased by no less than $2,057,000,000 in budget authority
and $634,000,000 in outlays.
----------
11. An Amendment To Be Offered by Representative Young of Florida, or
His Designee, Debatable for 10 Minutes
Strike section 2 of the bill.
----------
12. An Amendment To Be Offered by Representative Young of Florida, or
His Designee, Debatable for 10 Minutes
At the end, add the following new section:
SEC. . CHANGE OF FISCAL YEAR.
(a) Fiscal Year To Begin November 1.--Section 1102 of title
31, United States Code, is amended by striking ``October 1''
and inserting ``November 1'' and by striking ``September 30''
and inserting ``October 31''.
(b) Title of Appropriation Acts.--Section 105 of title 1,
United States Code, is amended by striking ``September 30'' and
inserting ``October 31''.
(c) Transition to New Fiscal Year.--(1) As soon as
practicable, the President shall prepare and submit to the
Congress--
(A) after consultation with the Committees on
Appropriations of the House of Representatives and the
Senate, budget estimates for the United States
Government for the period commencing October 1, 2005,
and ending October 31, 2005, in such form and detail as
he may determine; and
(B) propose legislation he considers appropriate with
respect to changes in law necessary to provide
authorizations of appropriations for that period.
(2) The Director of the Office of Management and Budget shall
provide, by regulation or otherwise, for the orderly transition
of all departments, agencies, and instrumentalities of the
United States Government and the government of the District of
Columbia from the use of the fiscal year in effect on the date
of enactment of this Act to the use of the new fiscal year
prescribed by section 1102 of title 31, United States Code, (as
amended by subsection (a)). The Director shall prepare and
submit to the Congress such additional proposed legislation as
he considers necessary to accomplish this objective.
(d) Effective Date.--This section and the amendments made by
it (except for subsection (c)) apply to fiscal year 2006 and
subsequent fiscal years.
----------
13. An Amendment To Be Offered by Representative Young of Florida, or
His Designee, Debatable for 10 Minutes
At the end, add the following new section:
SEC. . SUNSETTING OF DISCRETIONARY PROGRAMS AND UNEARNED
ENTITLEMENTS.
(a) Fiscal Year 2007.--Effective October 1, 2006,
authorizations for all programs (except earned entitlements)
shall terminate unless such programs are reauthorized after the
date of enactment of this Act and before October 1, 2006.
(b) Definitions.--For purposes of subsection (a), the term
``earned entitlement'' means an entitlement earned by service
or paid for in total or in part by assessments or contributions
such as social security, veterans' benefits, retirement
programs, and medicare.
----------
14. An Amendment To Be Offered by Representative Young of Florida, or
His Designee, Debatable for 10 Minutes
Strike section 5 of the bill.
----------
15. An Amendment in the Nature of a Substitute To Be Offered by
Representative Spratt of South Carolina, or His Designee, Debatable for
30 Minutes
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Budget Enforcement Act of
2004''.
SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS.
(a) Discretionary Spending Limits.--(1) Section 251(c)(1) of
the Balanced Budget and Emergency Deficit Control Act of 1985
(relating to fiscal year 2004) is amended--
(A) in subparagraph (A), by striking
``$31,834,000,000'' and inserting ``$28,052,000,000'';
and
(B) in subparagraph (B), by striking
``$1,462,000,000'' and inserting ``$1,436,000,000'' and
by striking ``$6,629,000,000'' and inserting
``$6,271,000,000''.
(2) Section 251(c)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by inserting a dash
after ``2005'', by redesignating the remaining portion of such
paragraph as subparagraph (D) and by moving it two ems to the
right, and by inserting after the dash the following new
subparagraphs:
``(A) for the general purpose discretionary
category: $832,474,000,000 in new budget
authority and $870,895,000,000 in outlays;
``(B) for the highway category:
$30,585,000,000 in outlays; and
``(C) for the mass transit category:
$1,554,000,000 in new budget authority and
$6,787,000,000 in outlays; and''.
(3) Section 251(c)(3) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by inserting a dash
after ``2006'', by redesignating the remaining portion of such
paragraph as subparagraph (D) and by moving it two ems to the
right, and by inserting after the dash the following new
subparagraphs:
``(A) for the general purpose discretionary
category: $856,879,000,000 in new budget
authority and $865,993,000,000 in outlays;
``(B) for the highway category:
$33,271,000,000 in outlays; and
``(C) for the mass transit category:
$1,671,000,000 in new budget authority and
$7,585,000,000 in outlays; and''.
(4) Section 251(c) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by redesignating
paragraphs (4) through (9) as paragraphs (7) through (12) and
inserting after paragraph (3) the following new paragraphs:
``(4) with respect to fiscal year 2007--
``(A) for the highway category:
$35,248,000,000 in outlays; and
``(B) for the mass transit category:
$1,785,000,000 in new budget authority and
$8,110,000,000 in outlays;
``(5) with respect to fiscal year 2008--
``(A) for the highway category:
$36,587,000,000 in outlays; and
``(B) for the mass transit category:
$1,890,000,000 in new budget authority and
$8,517,000,000 in outlays; and
``(6) with respect to fiscal year 2009--
``(A) for the highway category:
$37,682,000,000 in outlays; and
``(B) for the mass transit category:
$2,017,000,000 in new budget authority and
$8,968,000,000 in outlays;''.
(b) Definitions.--Section 250(c)(4) of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended--
(1) in subparagraph (B), by--
(A) striking ``the Transportation Equity Act
for the 21st Century and the Surface
Transportation Extension Act of 2003'' and
inserting ``the Transportation Equity Act: A
Legacy for Users''; and
(B) inserting before the period at the end
the following new clauses:
``(v) 69-8158-0-7-401 (Motor Carrier Safety
Grants).
``(vi) 69-8159-0-7-401 (Motor Carrier Safety
Operations and Programs).'';
(2) in subparagraph (C), by--
(A) inserting ``(and successor accounts)''
after ``budget accounts''; and
(B) striking ``the Transportation Equity Act
for the 21st Century and the Surface
Transportation Extension Act of 2003 or for
which appropriations are provided pursuant to
authorizations contained in those Acts (except
that appropriations provided pursuant to
section 5338(h) of title 49, United States
Code, as amended by the Transportation Equity
Act for the 21st Century, shall not be included
in this category)'' and inserting ``the
Transportation Equity Act: A Legacy for Users
or for which appropriations are provided
pursuant to authorizations contained in that
Act''; and
(3) in subparagraph (D)(ii), by striking ``section
8103 of the Transportation Equity Act for the 21st
Century'' and inserting ``section 8103 of the
Transportation Equity Act: A Legacy for Users''.
SEC. 3. ADJUSTMENTS TO ALIGN HIGHWAY SPENDING WITH REVENUES.
Subparagraphs (B) through (E) of section 251(b)(1) of the
Balanced Budget and Emergency Deficit Control Act of 1985 are
amended to read as follows:
``(B) Adjustment to align highway spending
with revenues.--(i) When the President submits
the budget under section 1105 of title 31,
United States Code, OMB shall calculate and the
budget shall make adjustments to the highway
category for the budget year and each outyear
as provided in clause (ii)(I)(cc).
``(ii)(I)(aa) OMB shall take the actual level
of highway receipts for the year before the
current year and subtract the sum of the
estimated level of highway receipts in
subclause (II) plus any amount previously
calculated under item (bb) for that year.
(bb) OMB shall take the current estimate of
highway receipts for the current year and
subtract the estimated level of receipts for
that year.
``(cc) OMB shall add one-half of the sum of
the amount calculated under items (aa) and (bb)
to the obligation limitations set forth in the
section 8103 of the Transportation Equity Act:
A Legacy for Users and, using current
estimates, calculate the outlay change
resulting from the change in obligations for
the budget year and the first outyear and the
outlays flowing therefrom through subsequent
fiscal years. After making the calculations
under the preceding sentence, OMB shall adjust
the amount of obligations set forth in that
section for the budget year and the first
outyear by adding one-half of the sum of the
amount calculated under items (aa) and (bb) to
each such year.
``(II) The estimated level of highway
receipts for the purposes of this clause are--
``(aa) for fiscal year 2004,
$30,572,000,000;
``(bb) for fiscal year 2005,
$34,260,000,000;
``(cc) for fiscal year 2006,
$35,586,000,000;
``(dd) for fiscal year 2007,
$36,570,000,000;
``(ee) for fiscal year 2008,
$37,603,000,000; and
``(ff) for fiscal year 2009,
$38,651,000,000.
``(III) In this clause, the term `highway
receipts' means the governmental receipts
credited to the highway account of the Highway
Trust Fund.
``(C) In addition to the adjustment required by
subparagraph (B), when the President submits the budget
under section 1105 of title 31, United States Code, for
fiscal year 2006, 2007, 2008, or 2009, OMB shall
calculate and the budget shall include for the budget
year and each outyear an adjustment to the limits on
outlays for the highway category and the mass transit
category equal to--
``(i) the outlays for the applicable category
calculated assuming obligation levels
consistent with the estimates prepared pursuant
to subparagraph (D), as adjusted, using current
technical assumptions; minus
``(ii) the outlays for the applicable
category set forth in the subparagraph (D)
estimates, as adjusted.
``(D)(i) When OMB and CBO submit their final
sequester report for fiscal year 2004, that report
shall include an estimate of the outlays for each of
the categories that would result in fiscal years 2005
through 2009 from obligations at the levels specified
in section 8103 of the Transportation Equity Act: A
Legacy for Users using current assumptions.
``(ii) When the President submits the budget under
section 1105 of title 31, United States Code, for
fiscal year 2006, 2007, 2008, or 2009, OMB shall adjust
the estimates made in clause (i) by the adjustments by
subparagraphs (B) and (C).
``(E) OMB shall consult with the Committees on the
Budget and include a report on adjustments under
subparagraphs (B) and (C) in the preview report.''.
SEC. 4. LEVEL OF OBLIGATION LIMITATIONS.
(a) Highway Category.--For the purposes of section 251(b) of
the Balanced Budget and Emergency Deficit Control Act of 1985,
the level of obligation limitations for the highway category
is--
(1) for fiscal year 2004, $34,309,000,000;
(2) for fiscal year 2005, $35,671,000,000;
(3) for fiscal year 2006, $36,719,000,000;
(4) for fiscal year 2007, $37,800,000,000;
(5) for fiscal year 2008, $38,913,000,000; and
(6) for fiscal year 2009, $40,061,000,000.
(b) Mass Transit Category.--For the purposes of section
251(b) of the Balanced Budget and Emergency Deficit Control Act
of 1985, the level of obligation limitations for the mass
transit category is--
(1) for fiscal year 2004, $7,266,000,000;
(2) for fiscal year 2005, $7,750,000,000;
(3) for fiscal year 2006, $8,266,000,000;
(4) for fiscal year 2007, $8,816,000,000;
(5) for fiscal year 2008, $9,403,000,000; and
(6) for fiscal year 2009, $10,029,000,000.
For purposes of this subsection, the term ``obligation
limitations'' means the sum of budget authority and obligation
limitations.
SEC. 5. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.
Section 252 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended ``2002'' both places it appears
and inserting ``2009''.
SEC. 6. REPORTS.
Subsections (c)(2) and (f)(2)(A) of section 254 of the
Balanced Budget and Emergency Deficit Control Act of 1985 are
amended by striking ``2002'' and inserting ``2006 (or 2009
solely for purposes of enforcing the discretionary spending
limits for the highway and mass transit categories)''.
SEC. 7. EXPIRATION.
Section 275(b) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by striking ``2002'' and
inserting ``2006 (or 2009 solely for purposes of enforcing the
discretionary spending limits for the highway and mass transit
categories)'' and by striking ``2006'' and inserting ``2013''.
SEC. 8. TECHNICAL CORRECTIONS TO THE BALANCED BUDGET AND EMERGENCY
DEFICIT CONTROL ACT OF 1985.
Part C of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended as follows:
(1) In section 250(a), strike ``SEC. 256. GENERAL AND
SPECIAL SEQUESTRATION RULES'' and insert ``Sec. 256.
General and special sequestration rules'' in the item
relating to section 256.
(2) In subparagraphs (F), (G), (H), (I), (J), and (K)
of section 250(c)(4), insert ``subparagraph'' after
``described in'' each place it appears.
(3) In section 250(c)(18), insert ``of'' after
``expenses''.
(4) In section 251(b)(1)(A), strike ``committees''
the first place it appears and insert ``Committees''.
(5) In section 251(b)(1)(C)(i), strike ``fiscal
years'' and insert ``fiscal year''.
(6) In section 251(b)(1)(D)(ii), strike ``fiscal
years'' and insert ``fiscal year''.
(7) In section 252(b)(2)(B), insert ``the'' before
``budget year''.
(8) In section 252(c)(1)(C)(i), strike ``paragraph
(1)'' and insert ``subsection (b)''.
(9) In section 254(c)(3)(A), strike ``subsection''
and insert ``section''.
(10) In section 254(f)(4), strike ``subsection'' and
insert ``section'' and strike ``sequesterable'' and
insert ``sequestrable''.
(11) In section 255(g)(1)(B), move the fourteenth
undesignated clause 2 ems to the right.
(12) In section 255(g)(2), insert ``and'' after the
semicolon at the end of the next-to-last undesignated
clause.
(13) In section 255(h)--
(A) strike ``and'' after the semicolon in the
ninth undesignated clause;
(B) insert ``and'' after the semicolon at the
end of the tenth undesignated clause; and
(C) strike the semicolon at the end and
insert a period.
(14) In section 256(k)(1), strike ``paragraph (5)''
and insert ``paragraph (6)''.
(15) In section 257(b)(2)(A)(i), strike
``differenes'' and insert ``differences''.
----------
16. An Amendment in the Nature of a Substitute To Be Offered by
Representative Hensarling of Texas, or His Designee, Debatable for 30
Minutes
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Family
Budget Protection Act of 2004''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Effective date.
TITLE I--A SIMPLE AND BINDING BUDGET
Subtitle A--Joint Budget Resolutions
Sec. 101. Declaration of purposes for the Budget Act.
Sec. 102. The timetable.
Sec. 103. Annual joint resolutions on the budget.
Sec. 104. Budget required before spending bills may be considered
Sec. 105. Amendments to effectuate joint resolutions on the budget.
Subtitle B--Budgeting for Emergencies
Sec. 111. Purpose.
Sec. 112. Repeal of adjustments for emergencies.
Sec. 113. OMB emergency criteria.
Sec. 114. Development of guidelines for application of emergency
definition.
Sec. 115. Reserve fund for emergencies in President's budget.
Sec. 116. Adjustments and reserve fund for emergencies in joint budget
resolutions.
Sec. 117. Application of section 306 to emergencies in excess of amounts
in reserve fund.
Sec. 118. Up-to-date tabulations.
Sec. 119. Prohibition on amendments to emergency reserve fund.
Subtitle C--Biennial Budget Option
Sec. 121. Effective date.
Sec. 122. Revision of timetable.
Sec. 123. Amendments to the Congressional Budget and Impoundment Control
Act of 1974.
Sec. 124. Amendments to Rules of House of Representatives.
Sec. 125. Amendments to title 31, United States Code.
Sec. 126. Two-year appropriations; title and style of appropriation
Acts.
Sec. 127. Multiyear authorizations.
Sec. 128. Government strategic and performance plans on a biennial
basis.
Sec. 129. Biennial appropriation bills.
Sec. 130. Assistance by Federal agencies to standing committees of the
Senate and the House of Representatives.
Subtitle D--Prevention of Government Shutdown
Sec. 141. Amendment to title 31.
Subtitle E--The Baseline
Sec. 151. Elimination of inflation adjustment.
Sec. 152. The President's budget.
Sec. 153. The congressional budget.
Sec. 154. Congressional Budget Office reports to committees.
Sec. 155. Treatment of emergencies.
TITLE II--PUTTING A LID ON THE FEDERAL BUDGET
Subtitle A--Spending Safeguards on the Growth of Entitlements and
Mandatories
Sec. 201. Spending caps on growth of entitlements and mandatories.
Sec. 202. Exempt programs and activities.
Sec. 203. Exceptions, limitations, and special rules.
Sec. 204. Point of order.
Sec. 205. Technical and conforming amendments.
Sec. 206. Establishment of Family Budget Protection Mandatory Account.
Subtitle B--Discretionary Spending Limits
Sec. 211. Enforcing discretionary spending limits.
Sec. 212. Establishment of Family Budget Protection Discretionary
Account.
Sec. 213. Revenue adjustment.
Subtitle C--Long-term Unfunded Obligations
Sec. 221. Long-term unfunded obligations.
Sec. 222. Points of order.
Sec. 223. Social security.
TITLE III--COMBATING WASTE, FRAUD, AND ABUSE.
Subtitle A--Sunsetting
Sec. 301. Reauthorization of discretionary programs and unearned
entitlements.
Sec. 302. Point of order.
Sec. 303. Decennial sunsetting.
Subtitle B--Enhanced Rescissions of Budget Authority Identified by the
President as Wasteful Spending
Sec. 311. Enhanced consideration of certain proposed rescissions.
Subtitle C--Commission to Eliminate Waste, Fraud, and Abuse
Sec. 331. Establishment of Commission.
Sec. 332. Duties of the Commission.
Sec. 333. Powers of the Commission.
Sec. 334. Commission personnel matters.
Sec. 335. Termination of the Commission.
Sec. 336. Congressional consideration of reform proposals.
Sec. 337. Authorization of appropriations.
TITLE IV--TRUTH IN ACCOUNTING
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees and Uniformed Services Personnel
Sec. 401. Civil Service Retirement System.
Sec. 402. Central Intelligence Agency Retirement and Disability System.
Sec. 403. Foreign Service Retirement and Disability System.
Sec. 404. Public Health Service Commissioned Corps Retirement System.
Sec. 405. National Oceanic and Atmospheric Administration Commissioned
Officer Corps Retirement System.
Sec. 406. Coast Guard Military Retirement System.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs for
Federal Employees
Sec. 411. Federal employees health benefits fund.
Sec. 412. Funding uniformed services health benefits for all retirees.
Sec. 413. Effective date.
Subtitle C--Limit on the Public Debt
Sec. 421. Findings.
Sec. 422. Purpose.
Sec. 423. Limit on public debt.
Subtitle D--Risk-Assumed Budgeting
Sec. 431. Federal insurance programs.
TITLE V--MAINTAINING A COMMITMENT TO THE FAMILY BUDGET
Subtitle A--Further Enforcement Amendments
Sec. 501. Super-majority points of order in the House of Representatives
and the Senate.
Sec. 502. Budget resolution enforcement point of order.
Sec. 503. Point of order waiver protection.
Subtitle B--The Byrd Rule
Sec. 511. Limitation on Byrd Rule.
Subtitle C--Treatment of Extraneous Appropriations in Omnibus
Appropriation Measures
Sec. 521. Treatment of extraneous appropriations.
SEC. 2. EFFECTIVE DATE.
Except as otherwise specifically provided, this Act and the
amendments made by this Act shall become effective on the date
of enactment of this Act and shall apply with respect to fiscal
years beginning after September 30, 2004.
TITLE I--A SIMPLE AND BINDING BUDGET
Subtitle A--Joint Budget Resolutions
SEC. 101. DECLARATION OF PURPOSES FOR THE BUDGET ACT.
Paragraphs (1) and (2) of section 2 of the Congressional
Budget and Impoundment Control Act of 1974 are amended to read
as follows:
``(1) to assure effective control over the budgetary
process;
``(2) to facilitate the determination each year of
the appropriate level of Federal revenues and
expenditures by the Congress and the President;''.
SEC. 102. THE TIMETABLE.
Section 300 of the Congressional Budget Act of 1974 is
amended to read as follows:
``TIMETABLE
``Sec. 300. The timetable with respect to the congressional
budget process for any fiscal year is as follows:
``On or before: Action to be completed:
First Monday in FePresident submits his budget........................
February 15.......Congressional Budget Office submits report to Budget
Committees.
Not later than 6 wCommittees submit views and estimates to Budget ....
Committees.
April 1...........Senate Budget Committee reports joint resolution on
the budget.
April 15..........Congress completes action on joint resolution on the
budget.
June 10...........House Appropriations Committee reports last annual .
appropriation bill.
June 15...........Congress completes action on reconciliation ........
legislation.
June 30...........House completes action on annual appropriation .....
bills.
October 1.........Fiscal year begins.''...............................
SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.
(a) Content of Annual Joint Resolutions on the Budget.--
Section 301(a)(4) of the Congressional Budget Act of 1974 is
amended to read as follows:
``(4) subtotals of new budget authority and outlays
for nondefense discretionary spending, defense
discretionary spending, direct spending (excluding
interest), and interest; and for emergencies (for the
reserve fund in section 316(b) and for military
operations in section 316(c));''.
(b) Additional Matters in Joint Resolution.--Section 301(b)
of the Congressional Budget Act of 1974 is amended as follows:
(1) Strike paragraphs (2), (4), and (6) through (9).
(2) After paragraph (3), insert ``and'' and
redesignate paragraph (5) as paragraph (4) and in such
paragraph strike the semicolon and insert a period.
(c) Required Contents of Report.--Section 301(e)(2) of the
Congressional Budget Act of 1974 is amended as follows:
(1) Redesignate subparagraphs (A), (B), (C), (D),
(E), and (F) as subparagraphs (B), (C), (E), (F), (H),
and (I), respectively.
(2) Before subparagraph (B) (as redesignated), insert
the following new subparagraph:
``(A) new budget authority and outlays for
each major functional category, based on
allocations of the total levels set forth
pursuant to subsection (a)(1);''.
(3) In subparagraph (C) (as redesignated), strike
``mandatory'' and insert ``direct spending''.
(4) After subparagraph (C) (as redesignated), insert
the following new subparagraph:
``(D) a measure, as a percentage of gross
domestic product, of total outlays, total
Federal revenues, the surplus or deficit, and
new outlays for nondefense discretionary
spending, defense spending, and direct spending
as set forth in such resolution;''.
(5) After subparagraph (F) (as redesignated), insert
the following new subparagraph:
``(G) if the joint resolution on the budget
includes any allocation to a committee other
than the Committee on Appropriations of levels
in excess of current law levels, a
justification for not subjecting any program,
project, or activity (for which the allocation
is made) to annual discretionary
appropriations;''.
(d) Additional Contents of Report.--Section 301(e)(3) of the
Congressional Budget Act of 1974 is amended as follows:
(1) Redesignate subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively, strike
subparagraphs (C) and (D), and redesignate subparagraph
(E) as subparagraph (D).
(2) Before subparagraph (B), insert the following new
subparagraph:
``(A) reconciliation directives described in
section 310;''.
(e) President's Budget Submission to the Congress.--(1) The
first two sentences of section 1105(a) of title 31, United
States Code, are amended to read as follows:
``On or after the first Monday in January but not later than
the first Monday in February of each year the President shall
submit a budget of the United States Government for the
following fiscal year which shall set forth the following
levels:
``(A) totals of new budget authority and outlays;
``(B) total Federal revenues and the amount, if any,
by which the aggregate level of Federal revenues should
be increased or decreased by bills and resolutions to
be reported by the appropriate committees;
``(C) the surplus or deficit in the budget;
``(D) subtotals of new budget authority and outlays
for nondefense discretionary spending, defense
discretionary spending, direct spending (excluding
interest), and interest, and for emergencies (for the
reserve fund in section 316(b) and for military
operations in section 316(c)); and
``(E) the public debt.
Each budget submission shall include a budget message and
summary and supporting information and, as a separately
delineated statement, the levels required in the preceding
sentence for at least each of the 9 ensuing fiscal years.''.
(2) The third sentence of section 1105(a) of title 31, United
States Code, is amended by inserting ``submission'' after
``budget''.
(f) Limitation on Contents of Budget Resolutions.--Section
305 of the Congressional Budget Act of 1974 is amended by
adding at the end the following new subsection:
``(e) Limitation on Contents.--(1) It shall not be in order
in the House of Representatives or in the Senate to consider
any joint resolution on the budget or any amendment thereto or
conference report thereon that contains any matter referred to
in paragraph (2).
``(2) Any joint resolution on the budget or any amendment
thereto or conference report thereon that contains any matter
not permitted in section 301(a) or (b) shall not be treated in
the House of Representatives or the Senate as a budget
resolution under subsection (a) or (b) or as a conference
report on a budget resolution under subsection (c) of this
section.''.
SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE CONSIDERED
(a) Amendments to Section 302.--Section 302(a) of the
Congressional Budget Act of 1974 is amended by striking
paragraph (5).
(b) Amendments to Section 303 and Conforming Amendments.--(1)
Section 303 of the Congressional Budget Act of 1974 is amended
by striking ``(a) In General.--'', by striking ``as reported to
the House or Senate'', by striking ``to become effective'' in
paragraph (1), and by striking subsections (b) and (c); and
(2) by striking its section heading and inserting the
following new section heading: ``consideration of budget-
related legislation before budget becomes law''.
(c) Additional Amendments.--(1) Section 302(g)(1) of the
Congressional Budget Act of 1974 is amended by striking ``and,
after April 15, section 303''.
(2)(A) Section 904(c)(1) of the Congressional Budget Act of
1974 is amended by inserting ``303,'' before ``305(b)(2),''.
(B) Section 904(d)(2) of the Congressional Budget Act of 1974
is amended by inserting ``303,'' before ``305(b)(2),''.
(d) Expedited Procedures Upon Veto of Joint Resolution on the
Budget.--(1) Title III of the Congressional Budget Act of 1974
(as amended by section 116) is further amended by adding after
section 316 the following new section:
``EXPEDITED PROCEDURES UPON VETO OF JOINT RESOLUTION ON THE BUDGET
``Sec. 317. (a) Special Rule.--If the President vetoes a
joint resolution on the budget for a fiscal year, the majority
leader of the House of Representatives or Senate (or his
designee) may introduce a concurrent resolution on the budget
or joint resolution on the budget for such fiscal year. If the
Committee on the Budget of either House fails to report such
concurrent or joint resolution referred to it within five
calendar days (excluding Saturdays, Sundays, or legal holidays
except when that House of Congress is in session) after the
date of such referral, the committee shall be automatically
discharged from further consideration of such resolution and
such resolution shall be placed on the appropriate calendar.
``(b) Procedure in the House of Representatives and the
Senate.--
``(1) Except as provided in paragraph (2), the
provisions of section 305 for the consideration in the
House of Representatives and in the Senate of joint
resolutions on the budget and conference reports
thereon shall also apply to the consideration of
concurrent resolutions on the budget introduced under
subsection (a) and conference reports thereon.
``(2) Debate in the Senate on any concurrent
resolution on the budget or joint resolution on the
budget introduced under subsection (a), and all
amendments thereto and debatable motions and appeals in
connection therewith, shall be limited to not more than
10 hours and in the House such debate shall be limited
to not more than 3 hours.
``(c) Contents of Concurrent Resolutions.--Any concurrent
resolution on the budget introduced under subsection (a) shall
be in compliance with section 301.
``(d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a
concurrent resolution on the budget described in subsection (a)
is agreed to, then the aggregates, allocations, and
reconciliation directives (if any) contained in the report
accompanying such concurrent resolution or in such concurrent
resolution shall be considered to be the aggregates,
allocations, and reconciliation directives for all purposes of
sections 302, 303, and 311 for the applicable fiscal years and
such concurrent resolution shall be deemed to be a joint
resolution for all purposes of this title and the Rules of the
House of Representatives and any reference to the date of
enactment of a joint resolution on the budget shall be deemed
to be a reference to the date agreed to when applied to such
concurrent resolution.''.
(2) The table of contents set forth in section 1(b) of the
Congressional Budget and Impoundment Control Act of 1974 is
amended by inserting after the item relating to section 316 the
following new item:
``Sec. 317. Expedited procedures upon veto of joint resolution on the
budget.''.
SEC. 105. AMENDMENTS TO EFFECTUATE JOINT RESOLUTIONS ON THE BUDGET.
(a) Definition.--Paragraph (4) of section 3 of the
Congressional Budget Act of 1974 is amended to read as follows:
``(4) the term `joint resolution on the budget'
means--
``(A) a joint resolution setting forth the
budget for the United States Government for a
fiscal year as provided in section 301; and
``(B) any other joint resolution revising the
budget for the United States Government for a
fiscal year as described in section 304.''.
(b) Additional Amendments to the Congressional Budget and
Impoundment Control Act of 1974.--(1)(A) Sections 301, 302,
303, 305, 308, 310, 311, 312, 314, 405, and 904 of the
Congressional Budget Act of 1974 (2 U.S.C. 621 et seq.) are
amended by striking ``concurrent'' each place it appears and
inserting ``joint''.
(B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1)
of the Congressional Budget Act of 1974 are amended by striking
``most recently agreed to concurrent resolution on the budget''
each place it occurs and inserting ``most recently enacted
joint resolution on the budget or agreed to concurrent
resolution on the budget (as applicable)''.
(ii) The section heading of section 301 is amended by
striking ``adoption of concurrent resolution'' and inserting
``joint resolutions''; and
(iii) Section 304 of such Act is amended to read as follows:
``PERMISSIBLE REVISIONS OF BUDGET RESOLUTIONS
``Sec. 304. At any time after the joint resolution on the
budget for a fiscal year has been enacted pursuant to section
301, and before the end of such fiscal year, the two Houses and
the President may enact a joint resolution on the budget which
revises or reaffirms the joint resolution on the budget for
such fiscal year most recently enacted.''.
(C) Sections 302, 303, 310, and 311, of such Act are amended
by striking ``agreed to'' each place it appears and by
inserting ``enacted''.
(2)(A) Paragraph (4) of section 3 of the Congressional Budget
and Impoundment Control Act of 1974 is amended by striking
``concurrent'' each place it appears and by inserting
``joint''.
(B) The table of contents set forth in section 1(b) of such
Act is amended--
(i) in the item relating to section 301, by striking
``adoption of concurrent resolution'' and inserting
``joint resolutions'';
(ii) by striking the item relating to section 303 and
inserting the following:
``Sec. 303. Consideration of budget-related legislation before budget
becomes law.'';
(iii) by striking ``concurrent'' and inserting
``joint'' in the item relating to section 305.
(c) Conforming Amendments to the Rules of the House of
Representatives.--Clauses 1(e)(1), 4(a)(4), 4(b)(2),
4(f)(1)(A), and 4(f)(2) of rule X, clause 10 of rule XVIII, and
clause 10 of rule XX of the Rules of the House of
Representatives are amended by striking ``concurrent'' each
place it appears and inserting ``joint''.
(d) Conforming Amendments to the Balanced Budget and
Emergency Deficit Control Act of 1985.--Section 258C(b)(1) of
the Balanced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 907d(b)(1)) is amended by striking ``concurrent'' and
inserting ``joint''.
(e) Conforming Amendments to Section 310 Regarding
Reconciliation Directives.--(1) The side heading of section
310(a) of the Congressional Budget Act of 1974 (as amended by
section 105(b)) is further amended by inserting ``Joint
Explanatory Statement Accompanying Conference Report on''
before ``Joint''.
(2) Section 310(a) of such Act is amended by striking ``A''
and inserting ``The joint explanatory statement accompanying
the conference report on a''.
(3) The first sentence of section 310(b) of such Act is
amended by striking ``If'' and inserting ``If the joint
explanatory statement accompanying the conference report on''.
(4) Section 310(c)(1) of such Act is amended by inserting
``the joint explanatory statement accompanying the conference
report on'' after ``pursuant to''.
(f) Conforming Amendments to Section 3 Regarding Direct
Spending.--Section 3 of the Congressional Budget and
Impoundment Control Act of 1974 is amended by adding at the end
the following new paragraph:
``(11) The term `direct spending' has the meaning
given to such term in section 250(c)(8) of the Balanced
Budget and Emergency Deficit Control Act of 1985.''.
Subtitle B--Budgeting for Emergencies
SEC. 111. PURPOSE.
The purposes of this subtitle are to--
(1) develop budgetary and fiscal procedures for
emergencies;
(2) subject spending for emergencies to budgetary
procedures and controls; and
(3) establish criteria for determining compliance
with emergency requirements.
SEC. 112. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.
(a) Elimination of Emergency Designation.--Sections
251(b)(2)(A), 252(e), and 252(d)(4)(B) of the Balanced Budget
and Emergency Deficit Control Act of 1985 are repealed.
(b) Elimination of Emergency Adjustments.--Section 314(b) of
the Congressional Budget Act of 1974 is amended by striking
paragraph (1) and by redesignating paragraphs (2) through (5)
as paragraphs (1) through (4), respectively.
(c) Conforming Amendment.--Clause 2 of rule XXI of the Rules
of the House of Representatives is amended by repealing
paragraph (e) and by redesignating paragraph (f) as paragraph
(e).
SEC. 113. OMB EMERGENCY CRITERIA.
Definition of Emergency.--Section 3 of the Congressional
Budget and Impoundment Control Act of 1974 (as amended by
section 105(e)) is further amended by adding at the end the
following new paragraph:
``(12)(A) The term `emergency' means a situation
that--
``(i) requires new budget authority and
outlays (or new budget authority and the
outlays flowing therefrom) for the prevention
or mitigation of, or response to, loss of life
or property, or a threat to national security;
and
``(ii) is unanticipated.
``(B) As used in subparagraph (A), the term
`unanticipated' means that the situation is--
``(i) sudden, which means quickly coming into
being or not building up over time;
``(ii) urgent, which means a pressing and
compelling need requiring immediate action;
``(iii) unforeseen, which means not predicted
or anticipated as an emerging need; and
``(iv) temporary, which means not of a
permanent duration.''.
(b) Conforming Amendment.--The term `emergency' has the
meaning given to such term in section 3 of the Congressional
Budget and Impoundment Control Act of 1974.''.
SEC. 114. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF EMERGENCY
DEFINITION.
Not later than 5 months after the date of enactment of this
Act, the chairmen of the Committees on the Budget (in
consultation with the President) shall, after consulting with
the chairmen of the Committees on Appropriations and applicable
authorizing committees of their respective Houses and the
Directors of the Congressional Budget Office and the Office of
Management and Budget, jointly publish in the Congressional
Record guidelines for application of the definition of
emergency set forth in section 3(12) of the Congressional
Budget and Impoundment Control Act of 1974.
SEC. 115. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.
Section 1105(f) of title 31, United States Code is amended by
adding at the end the following new sentences: ``Such budget
submission shall also comply with the requirements of
subsections (b) and (c) of section 316 of the Congressional
Budget Act of 1974 and, in the case of any budget authority
requested for an emergency, such submission shall include a
detailed justification of why such emergency is an emergency
within the meaning of section 3(12) of the Congressional Budget
Act of 1974.''.
SEC. 116. ADJUSTMENTS AND RESERVE FUND FOR EMERGENCIES IN JOINT BUDGET
RESOLUTIONS.
(a) Emergencies.--Title III of the Congressional Budget Act
of 1974 is amended by adding at the end the following new
section:
``EMERGENCIES
``Sec. 316. (a) Adjustments.--
``(1) In general.--After the reporting of a bill or
joint resolution or the submission of a conference
report thereon that provides budget authority for any
emergency as identified pursuant to subsection (d) that
is not covered by subsection (c)--
``(A) the chairman of the Committee on the
Budget of the House of Representatives or the
Senate shall determine and certify, pursuant to
the guidelines referred to in section 114 of
the Family Budget Protection Act of 2004, the
portion (if any) of the amount so specified
that is for an emergency within the meaning of
section 3(12); and
``(B) such chairman shall make the adjustment
set forth in paragraph (2) for the amount of
new budget authority (or outlays) in that
measure and the outlays flowing from that
budget authority.
``(2) Matters to be adjusted.--The adjustments
referred to in paragraph (1) are to be made to the
allocations made pursuant to the appropriate joint
resolution on the budget pursuant to section 302(a) and
shall be in an amount not to exceed the amount reserved
for emergencies pursuant to the requirements of
subsection (b).
``(b) Reserve Fund for Nonmilitary Emergencies.--The amount
set forth in the reserve fund for emergencies for budget
authority and outlays for a fiscal year pursuant to section
301(a)(4) shall equal--
``(1) the average of the enacted levels of budget
authority for emergencies (other than those covered by
subsection (c)) in the 5 fiscal years preceding the
current year; and
``(2) the average of the levels of outlays for
emergencies in the 5 fiscal years preceding the current
year flowing from the budget authority referred to in
paragraph (1), but only in the fiscal year for which
such budget authority first becomes available for
obligation.
``(c) Treatment of Emergencies to Fund Certain Military
Operations.--Whenever the Committee on Appropriations reports
any bill or joint resolution that provides budget authority for
any emergency that is a threat to national security and the
funding of which carries out a military operation authorized by
a declaration of war or a joint resolution authorizing the use
of military force (or economic assistance funding in
furtherance of such operation) and the report accompanying that
bill or joint resolution, pursuant to subsection (d),
identifies any provision that increases outlays or provides
budget authority (and the outlays flowing therefrom) for such
emergency, the enactment of which would cause the total amount
of budget authority or outlays provided for emergencies for the
budget year in the joint resolution on the budget (pursuant to
section 301(a)(4)) to be exceeded:
``(A) Such bill or joint resolution shall be referred
to the Committee on the Budget of the House or the
Senate, as the case may be, with instructions to report
it without amendment, other than that specified in
subparagraph (B), within 5 legislative days of the day
in which it is reported from the originating committee.
If the Committee on the Budget of either House fails to
report a bill or joint resolution referred to it under
this subparagraph within such 5-day period, the
committee shall be automatically discharged from
further consideration of such bill or joint resolution
and such bill or joint resolution shall be placed on
the appropriate calendar.
``(B) An amendment to such a bill or joint resolution
referred to in this subsection shall only consist of an
exemption from section 251 of the Balanced Budget and
Emergency Deficit Control Act of 1985 of all or any
part of the provisions that provide budget authority
(and the outlays flowing therefrom) for such emergency
if the committee determines, pursuant to the guidelines
referred to in section 114 of the Family Budget
Protection Act of 2004, that such budget authority is
for an emergency within the meaning of section 3(12).
``(C) If such a bill or joint resolution is reported
with an amendment specified in subparagraph (B) by the
Committee on the Budget of the House of Representatives
or the Senate, then the budget authority and resulting
outlays that are the subject of such amendment shall
not be included in any determinations under section
302(f) or 311(a) for any bill, joint resolution,
amendment, motion, or conference report.
``(d) Committee Notification of Emergency Legislation.--
Whenever the Committee on Appropriations or any other committee
of either House (including a committee of conference) reports
any bill or joint resolution that provides budget authority for
any emergency, the report accompanying that bill or joint
resolution (or the joint explanatory statement of managers in
the case of a conference report on any such bill or joint
resolution) shall identify all provisions that provide budget
authority and the outlays flowing therefrom for such emergency
and include a statement of the reasons why such budget
authority meets the definition of an emergency pursuant to the
guidelines referred to in section 114 of the Family Budget
Protection Act of 2004.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by inserting after the item
relating to section 315 the following new item:
``Sec. 316. Emergencies.''.
SEC. 117. APPLICATION OF SECTION 306 TO EMERGENCIES IN EXCESS OF
AMOUNTS IN RESERVE FUND.
Section 306 of the Congressional Budget Act of 1974 is
amended by inserting at the end the following new sentence:
``No amendment reported by the Committee on the Budget (or from
the consideration of which such committee has been discharged)
pursuant to section 316(c) may be amended.''.
SEC. 118. UP-TO-DATE TABULATIONS.
Section 308(b)(2) of the Congressional Budget Act of 1974 is
amended by striking ``and'' at the end of subparagraph (B), by
striking the period at the end of subparagraph (C) and
inserting ``; and'', and by adding at the end the following new
subparagraph:
``(D) shall include an up-to-date tabulation
of amounts remaining in the reserve fund for
emergencies.''.
SEC. 119. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE FUND.
(a) Point of Order.--Section 305 of the Congressional Budget
Act of 1974 (as amended by section 103(f)) is further amended
by adding at the end the following new subsection:
``(f) Point of Order Regarding Emergency Reserve Fund.--It
shall not be in order in the House of Representatives or in the
Senate to consider an amendment to a joint resolution on the
budget which changes the amount of budget authority and outlays
set forth in section 301(a)(4) for emergency reserve fund.''.
(b) Technical Amendment.--(1) Section 904(c)(1) of the
Congressional Budget Act of 1974 is amended by inserting
``305(e), 305(f),'' after ``305(c)(4),''.
(2) Section 904(d)(2) of the Congressional Budget Act of 1974
is amended by inserting ``305(e), 305(f),'' after
``305(c)(4),''.
Subtitle C--Biennial Budget Option
SEC. 121. EFFECTIVE DATE.
If--
(1) as part of the President's budget submission
under section 1105(a) of title 31, United States Code,
during the first session of any Congress, the President
includes a request that the joint resolution on the
budget that will be considered during the first session
of the next Congress be for a biennium consisting of
two consecutive fiscal years; and
(2) the joint resolution on the budget for the fiscal
year to which the President's submission relates
contains a provision stating that the joint resolution
on the budget that will be considered during the first
session of the next Congress shall be for a biennium
consisting of two consecutive fiscal years;
then the provisions of this subtitle shall take effect on
January 1 of the calendar year in which that next Congress
commences and apply to that Congress and each Congress
thereafter.
SEC. 122. REVISION OF TIMETABLE.
Section 300 of the Congressional Budget Act of 1974 (2 U.S.C.
631) is amended to read as follows:
``TIMETABLE
``Sec. 300. (a) In General.--Except as provided by subsection
(b), the timetable with respect to the congressional budget
process for any Congress (beginning with the One Hundred Tenth
Congress or a subsequent Congress, as applicable) is as
follows:
``First Session
``On or before: Action to be completed:
First Monday in February............. President submits budget recommendations.
February 15.......................... Congressional Budget Office submits report to Budget Committees.
Not later than 6 weeks after budget Committees submit views and estimates to Budget Committees.
submission.
April 1.............................. Budget Committees report joint resolution on the biennial budget.
May 15............................... Congress completes action on joint resolution on the biennial budget.
May 15............................... Biennial appropriation bills may be considered in the House.
June 10.............................. House Appropriations Committee reports last biennial appropriation bill.
June 30.............................. House completes action on biennial appropriation bills.
October 1............................ Biennium begins.
``Second Session
``On or before: Action to be completed:
February 15.......................... President submits budget review.
Not later than 6 weeks after Congressional Budget Office submits report to Budget Committees.
President submits budget review.
The last day of the session.......... Congress completes action on bills and resolutions authorizing new budget
authority for the succeeding biennium.
``(b) Special Rule.--In the case of any first session of
Congress that begins in any year during which the term of a
President (except a President who succeeds himself) begins, the
following dates shall supersede those set forth in subsection
(a):
``First Session
``On or before: Action to be completed:
First Monday in April................ President submits budget recommendations.
April 20............................. Committees submit views and estimates to Budget Committees.
May 15............................... Budget Committees report joint resolution on the biennial budget.
June 1............................... Congress completes action on joint resolution on the biennial budget.
June 1............................... Biennial appropriation bills may be considered in the House.
July 1............................... House Appropriations Committee reports last biennial appropriation bill.
July 20.............................. House completes action on biennial appropriation bills.
October 1............................ Biennium begins.''.
SEC. 123. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT
CONTROL ACT OF 1974.
(a) Declaration of Purpose.--Section 2(2) of the
Congressional Budget and Impoundment Control Act of 1974 (2
U.S.C. 621(2)) is amended by striking ``each year'' and
inserting ``biennially''.
(b) Definitions.--
(1) Budget resolution.--Section 3(4) of such Act (2
U.S.C. 622(4)) is amended by striking ``fiscal year''
each place it appears and inserting ``biennium''.
(2) Biennium.--Section 3 of such Act (2 U.S.C. 622)
(as amended by section 111(a)) is further amended by
adding at the end the following new paragraph:
``(13) The term `biennium' means the period of 2
consecutive fiscal years beginning on October 1 of any
odd-numbered year.''.
(c) Biennial Joint Resolution on the Budget.--
(1) Contents of resolution.--Section 301(a) of such
Act (2 U.S.C. 632(a)) is amended--
(A) in the matter preceding paragraph (1)
by--
(i) striking ``April 15 of each
year'' and inserting ``May 15 of each
odd-numbered year'';
(ii) striking ``the fiscal year
beginning on October 1 of such year''
the first place it appears and
inserting ``the biennium beginning on
October 1 of such year'';
(iii) striking ``the fiscal year
beginning on October 1 of such year''
the second place it appears and
inserting ``each fiscal year in such
period''; and
(iv) striking ``each of the four
ensuing fiscal years'' and inserting
``each fiscal year in the next 2
bienniums'';
(B) in paragraph (6), by striking ``for the
fiscal year'' and inserting ``for each fiscal
year in the biennium''; and
(C) in paragraph (7), by striking ``for the
fiscal year'' and inserting ``for each fiscal
year in the biennium''.
(2) Additional matters.--Section 301(b) of such Act
(2 U.S.C. 632(b)) is amended--
(A) in paragraph (3), by striking ``for such
fiscal year'' and inserting ``for either fiscal
year in such biennium''; and
(B) in paragraph (7), by striking ``for the
first fiscal year'' and inserting ``for each
fiscal year in the biennium''.
(3) Views of other committees.--Section 301(d) of
such Act (2 U.S.C. 632(d)) is amended by inserting
``(or, if applicable, as provided by section 300(b))''
after ``United States Code''.
(4) Hearings.--Section 301(e)(1) of such Act (2
U.S.C. 632(e)) is amended by--
(A) striking ``fiscal year'' and inserting
``biennium''; and
(B) inserting after the second sentence the
following: ``On or before April 1 of each odd-
numbered year (or, if applicable, as provided
by section 300(b)), the Committee on the Budget
of each House shall report to its House the
joint resolution on the budget referred to in
subsection (a) for the biennium beginning on
October 1 of that year.''.
(5) Goals for reducing unemployment.--Section 301(f)
of such Act (2 U.S.C. 632(f)) is amended by striking
``fiscal year'' each place it appears and inserting
``biennium''.
(6) Economic assumptions.--Section 301(g)(1) of such
Act (2 U.S.C. 632(g)(1)) is amended by striking ``for a
fiscal year'' and inserting ``for a biennium''.
(7) Section heading.--The section heading of section
301 of such Act is amended by striking
``annual'' and inserting
``biennial''.
(8) Table of contents.--The item relating to section
301 in the table of contents set forth in section 1(b)
of such Act is amended by striking ``Annual'' and
inserting ``Biennial''.
(d) Committee Allocations.--Section 302 of such Act (2 U.S.C.
633) is amended--
(1) in subsection (a)(1) by--
(A) striking ``for the first fiscal year of
the resolution,'' and inserting ``for each
fiscal year in the biennium,'';
(B) striking ``for that period of fiscal
years'' and inserting ``for all fiscal years
covered by the resolution''; and
(C) striking ``for the fiscal year of that
resolution'' and inserting ``for each fiscal
year in the biennium'';
(2) in subsection (f)(1), by striking ``for a fiscal
year'' and inserting ``for a biennium'';
(3) in subsection (f)(1), by striking ``first fiscal
year'' and inserting ``either fiscal year of the
biennium'';
(4) in subsection (f)(2)(A), by--
(A) striking ``first fiscal year'' and
inserting ``each fiscal year of the biennium'';
and
(B) striking ``the total of fiscal years''
and inserting ``the total of all fiscal years
covered by the resolution''; and
(5) in subsection (g)(1)(A), by striking ``April''
and inserting ``May''.
(e) Section 303 Point of Order.--Section 303 of such Act (2
U.S.C. 634(a)) is amended by striking ``for a fiscal year'' and
inserting ``for a biennium'' and by striking ``the first fiscal
year'' and inserting ``each fiscal year of the biennium''.
(f) Permissible Revisions of Joint Resolutions on the
Budget.--Section 304 of such Act (2 U.S.C. 635) is amended--
(1) by striking ``fiscal year'' the first two places
it appears and inserting ``biennium'';
(2) by striking ``for such fiscal year''; and
(3) by inserting before the period ``for such
biennium''.
(g) Procedures for Consideration of Budget Resolutions.--
Section 305(a)(3) of such Act (2 U.S.C. 636(b)(3)) is amended
by striking ``fiscal year'' and inserting ``biennium''.
(h) Completion of House Committee Action on Appropriation
Bills.--Section 307 of such Act (2 U.S.C. 638) is amended--
(1) by striking ``each year'' and inserting ``each
odd-numbered year (or, if applicable, as provided by
section 300(b), July 1)'';
(2) by striking ``annual'' and inserting
``biennial'';
(3) by striking ``fiscal year'' and inserting
``biennium''; and
(4) by striking ``that year'' and inserting ``each
odd-numbered year''.
(i) Quarterly Budget Reports.--Section 308 of such Act (2
U.S.C. 639) is amended by adding at the end the following new
subsection:
``(d) Quarterly Budget Reports.--The Director of the
Congressional Budget Office shall, as soon as practicable after
the completion of each quarter of the fiscal year, prepare an
analysis comparing revenues, spending, and the deficit or
surplus for the current fiscal year to assumptions included in
the congressional budget resolution. In preparing this report,
the Director of the Congressional Budget Office shall combine
actual budget figures to date with projected revenue and
spending for the balance of the fiscal year. The Director of
the Congressional Budget Office shall include any other
information in this report that it deems useful for a full
understanding of the current fiscal position of the Government.
The reports mandated by this subsection shall be transmitted by
the Director to the Senate and House Committees on the Budget,
and the Congressional Budget Office shall make such reports
available to any interested party upon request.''.
(j) Completion of House Action on Regular Appropriation
Bills.--Section 309 of such Act (2 U.S.C. 640) is amended--
(1) by striking ``It'' and inserting ``Except
whenever section 300(b) is applicable, it'';
(2) by inserting ``of any odd-numbered calendar
year'' after ``July'';
(3) by striking ``annual'' and inserting
``biennial''; and
(4) by striking ``fiscal year'' and inserting
``biennium''.
(k) Reconciliation Process.--Section 310 of such Act (2
U.S.C. 641) is amended--
(1) in subsection (a), in the matter preceding
paragraph (1), by striking ``any fiscal year'' and
inserting ``any biennium'';
(2) in subsection (a)(1), by striking ``such fiscal
year'' each place it appears and inserting ``any fiscal
year covered by such resolution''; and
(3) by striking subsection (f) and redesignating
subsection (g) as subsection (f).
(l) Section 311 Point of Order.--
(1) In the house.--Section 311(a)(1) of such Act (2
U.S.C. 642(a)) is amended--
(A) by striking ``for a fiscal year'' and
inserting ``for a biennium'';
(B) by striking ``the first fiscal year''
each place it appears and inserting ``either
fiscal year of the biennium''; and
(C) by striking ``that first fiscal year''
and inserting ``each fiscal year in the
biennium''.
(2) In the senate.--Section 311(a)(2) of such Act is
amended--
(A) in subparagraph (A), by striking ``for
the first fiscal year'' and inserting ``for
either fiscal year of the biennium''; and
(B) in subparagraph (B)--
(i) by striking ``that first fiscal
year'' the first place it appears and
inserting ``each fiscal year in the
biennium''; and
(ii) by striking ``that first fiscal
year and the ensuing fiscal years'' and
inserting ``all fiscal years''.
(3) Social security levels.--Section 311(a)(3) of
such Act is amended by--
(A) striking ``for the first fiscal year''
and inserting ``each fiscal year in the
biennium''; and
(B) striking ``that fiscal year and the
ensuing fiscal years'' and inserting ``all
fiscal years''.
(m) Maximum Deficit Amount Point of Order.--Section 312(c) of
the Congressional Budget Act of 1974 (2 U.S.C. 643) is
amended--
(1) by striking ``for a fiscal year'' and inserting
``for a biennium'';
(2) in paragraph (1), by striking ``first fiscal
year'' and inserting ``either fiscal year in the
biennium'';
(3) in paragraph (2), by striking ``that fiscal
year'' and inserting ``either fiscal year in the
biennium''; and
(4) in the matter following paragraph (2), by
striking ``that fiscal year'' and inserting ``the
applicable fiscal year''.
SEC. 124. AMENDMENTS TO RULES OF HOUSE OF REPRESENTATIVES.
(a) Clause 4(a)(1)(A) of rule X of the Rules of the House of
Representatives is amended by inserting ``odd-numbered'' after
``each''.
(b) Clause 4(a)(4) of rule X of the Rules of the House of
Representatives is amended by striking ``fiscal year'' and
inserting ``biennium''.
(c) Clause 4(b)(2) of rule X of the Rules of the House of
Representatives is amended by striking ``each fiscal year'' and
inserting ``the biennium''.
(d) Clause 4(b) of rule X of the Rules of the House of
Representatives is amended by striking ``and'' at the end of
subparagraph (5), by striking the period and inserting ``;
and'' at the end of subparagraph (6), and by adding at the end
the following new subparagraph:
``(7) use the second session of each Congress to
study issues with long-term budgetary and economic
implications, which would include--
``(A) hold hearings to receive testimony from
committees of jurisdiction to identify problem
areas and to report on the results of
oversight; and
``(B) by January 1 of each odd-number year,
issuing a report to the Speaker which
identifies the key issues facing the Congress
in the next biennium.''.
(e) Clause 4(e) of rule X of the Rules of the House of
Representatives is amended by striking ``annually'' each place
it appears and inserting ``biennially'' and by striking
``annual'' and inserting ``biennial''.
(f) Clause 4(f) of rule X of the Rules of the House of
Representatives is amended--
(1) by inserting ``during each odd-numbered year''
after ``submits his budget'';
(2) by striking ``fiscal year'' the first place it
appears and inserting ``biennium''; and
(3) by striking ``that fiscal year'' and inserting
``each fiscal year in such ensuing biennium''.
(g) Clause 11(i) of rule X of the Rules of the House of
Representatives is amended by striking ``during the same or
preceding fiscal year''.
(h) Clause 3(d)(2)(A) of rule XIII of the Rules of the House
of Representatives is amended by striking ``five'' both places
it appears and inserting ``six''.
(i) Clause 5(a)(1) of rule XIII of the Rules of the House of
Representatives is amended by striking ``fiscal year after
September 15 in the preceding fiscal year'' and inserting
``biennium after September 15 of the calendar year in which
such biennium begins''.
SEC. 125. AMENDMENTS TO TITLE 31, UNITED STATES CODE.
(a) Definition.--Section 1101 of title 31, United States
Code, is amended by adding at the end the following new
paragraph:
``(3) `biennium' has the meaning given to such term
in paragraph (13) of section 3 of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C.
622(13)).''.
(b) Budget Contents and Submission to the Congress.--
(1) Schedule.--The matter preceding paragraph (1) in
section 1105(a) of title 31, United States Code, is
amended to read as follows:
``(a) On or before the first Monday in February of each odd-
numbered year (or, if applicable, as provided by section 300(b)
of the Congressional Budget Act of 1974), beginning with the
One Hundred Tenth Congress or a subsequent Congress (as
applicable), the President shall submit to the Congress the
budget for the biennium beginning on October 1 of such calendar
year. The budget transmitted under this subsection shall
include a budget message and summary and supporting
information. The President shall include in each budget the
following:''.
(2) Expenditures.--Section 1105(a)(5) of title 31,
United States Code, is amended by striking ``the fiscal
year for which the budget is submitted and the 4 fiscal
years after that year'' and inserting ``each fiscal
year in the biennium for which the budget is submitted
and in the succeeding 4 years''.
(3) Receipts.--Section 1105(a)(6) of title 31, United
States Code, is amended by striking ``the fiscal year
for which the budget is submitted and the 4 fiscal
years after that year'' and inserting ``each fiscal
year in the biennium for which the budget is submitted
and in the succeeding 4 years''.
(4) Balance statements.--Section 1105(a)(9)(C) of
title 31, United States Code, is amended by striking
``the fiscal year'' and inserting ``each fiscal year in
the biennium''.
(5) Government functions and activities.--Section
1105(a)(12) of title 31, United States Code, is amended
in subparagraph (A), by striking ``the fiscal year''
and inserting ``each fiscal year in the biennium''.
(6) Allowances.--Section 1105(a)(13) of title 31,
United States Code, is amended by striking ``the fiscal
year'' and inserting ``each fiscal year in the
biennium''.
(7) Allowances for unanticipated and uncontrollable
expenditures.--Section 1105(a)(14) of title 31, United
States Code, is amended by striking ``that year'' and
inserting ``each fiscal year in the biennium for which
the budget is submitted''.
(8) Tax expenditures.--Section 1105(a)(16) of title
31, United States Code, is amended by striking ``the
fiscal year'' and inserting ``each fiscal year in the
biennium''.
(9) Estimates for future years.--Section 1105(a)(17)
of title 31, United States Code, is amended--
(A) by striking ``the fiscal year following
the fiscal year'' and inserting ``each fiscal
year in the biennium following the biennium'';
(B) by striking ``that following fiscal
year'' and inserting ``each such fiscal year'';
and
(C) by striking ``fiscal year before the
fiscal year'' and inserting ``biennium before
the biennium''.
(10) Prior year outlays.--Section 1105(a)(18) of
title 31, United States Code, is amended--
(A) by striking ``the prior fiscal year,''
and inserting ``each of the 2 most recently
completed fiscal years,'';
(B) by striking ``for that year'' and
inserting ``with respect to those fiscal
years''; and
(C) by striking ``in that year'' and
inserting ``in those fiscal years''.
(11) Prior year receipts.--Section 1105(a)(19) of
title 31, United States Code, is amended--
(A) by striking ``the prior fiscal year'' and
inserting ``each of the 2 most recently
completed fiscal years'';
(B) by striking ``for that year'' and
inserting ``with respect to those fiscal
years''; and
(C) by striking ``in that year'' each place
it appears and inserting ``in those fiscal
years''.
(c) Estimated Expenditures of Legislative and Judicial
Branches.--Section 1105(b) of title 31, United States Code, is
amended by striking ``each year'' and inserting ``each even-
numbered year''.
(d) Recommendations To Meet Estimated Deficiencies.--Section
1105(c) of title 31, United States Code, is amended--
(1) by striking ``the fiscal year for'' the first
place it appears and inserting ``each fiscal year in
the biennium for'';
(2) by striking ``the fiscal year for'' the second
place it appears and inserting ``each fiscal year of
the biennium, as the case may be,''; and
(3) by striking ``that year'' and inserting ``for
each year of the biennium''.
(e) Capital Investment Analysis.--Section 1105(e)(1) of title
31, United States Code, is amended by striking ``ensuing fiscal
year'' and inserting ``biennium to which such budget relates''.
(f) Supplemental Budget Estimates and Changes.--
(1) In general.--Section 1106(a) of title 31, United
States Code, is amended--
(A) in the matter preceding paragraph (1),
by--
(i) inserting ``and before February
15 of each even-numbered year'' after
``Before July 16 of each year''; and
(ii) striking ``fiscal year'' and
inserting ``biennium'';
(B) in paragraph (1), by striking ``that
fiscal year'' and inserting ``each fiscal year
in such biennium'';
(C) in paragraph (2), by striking ``4 fiscal
years following the fiscal year'' and inserting
``4 fiscal years following the biennium''; and
(D) in paragraph (3), by striking ``fiscal
year'' and inserting ``biennium''.
(2) Changes.--Section 1106(b) of title 31, United
States Code, is amended by--
(A) striking ``the fiscal year'' and
inserting ``each fiscal year in the biennium'';
and
(B) inserting ``and before February 15 of
each even-numbered year'' after ``Before July
16 of each year''.
(g) Current Programs and Activities Estimates.--
(1) The president.--Section 1109(a) of title 31,
United States Code, is amended--
(A) by striking ``On or before the first
Monday after January 3 of each year (on or
before February 5 in 1986)'' and inserting ``At
the same time the budget required by section
1105 is submitted for a biennium''; and
(B) by striking ``the following fiscal year''
and inserting ``each fiscal year of such
period''.
(2) Joint economic committee.--Section 1109(b) of
title 31, United States Code, is amended by striking
``March 1 of each year'' and inserting ``within 6 weeks
of the President's budget submission for each odd-
numbered year (or, if applicable, as provided by
section 300(b) of the Congressional Budget Act of
1974)''.
(h) Year-Ahead Requests for Authorizing Legislation.--Section
1110 of title 31, United States Code, is amended by--
(1) striking ``May 16'' and inserting ``March 31'';
and
(2) striking ``year before the year in which the
fiscal year begins'' and inserting ``calendar year
preceding the calendar year in which the biennium
begins''.
SEC. 126. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE OF APPROPRIATION
ACTS.
Section 105 of title 1, United States Code, is amended to
read as follows:
``Sec. 105. Title and style of appropriations Acts
``(a) The style and title of all Acts making appropriations
for the support of the Government shall be as follows: `An Act
making appropriations (here insert the object) for each fiscal
year in the biennium of fiscal years (here insert the fiscal
years of the biennium).'.
``(b) All Acts making regular appropriations for the support
of the Government shall be enacted for a biennium and shall
specify the amount of appropriations provided for each fiscal
year in such period.
``(c) For purposes of this section, the term `biennium' has
the same meaning as in section 3(13) of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C.
622(13)).''.
SEC. 127. MULTIYEAR AUTHORIZATIONS.
(a) In General.--Title III of the Congressional Budget Act of
1974 (as amended by section 116(a)) is further amended by
adding at the end the following new section:
``MULTIYEAR AUTHORIZATIONS OF APPROPRIATIONS
``Sec. 318. (a) It shall not be in order in the House of
Representatives or the Senate to consider any measure that
contains a specific authorization of appropriations for any
purpose unless the measure includes such a specific
authorization of appropriations for that purpose for not less
than each fiscal year in one or more bienniums.
``(b)(1) For purposes of this section, a specific
authorization of appropriations is an authorization for the
enactment of an amount of appropriations or amounts not to
exceed an amount of appropriations (whether stated as a sum
certain, as a limit, or as such sums as may be necessary) for
any purpose for a fiscal year.
``(2) Subsection (a) does not apply with respect to an
authorization of appropriations for a single fiscal year for
any program, project, or activity if the measure containing
that authorization includes a provision expressly stating the
following: `Congress finds that no authorization of
appropriation will be required for [Insert name of applicable
program, project, or activity] for any subsequent fiscal
year.'.
``(c) For purposes of this section, the term `measure' means
a bill, joint resolution, amendment, motion, or conference
report.''.
(b) Amendment to Table of Contents.--The table of contents
set forth in section 1(b) of the Congressional Budget and
Impoundment Control Act of 1974 is amended by adding after the
item relating to section 317 the following new item:
``Sec. 318. Multiyear authorizations of appropriations.''.
SEC. 128. GOVERNMENT STRATEGIC AND PERFORMANCE PLANS ON A BIENNIAL
BASIS.
(a) Strategic Plans.--Section 306 of title 5, United States
Code, is amended--
(1) in subsection (a), by striking ``September 30,
1997'' and inserting ``September 30, 2007'';
(2) in subsection (b)--
(A) by striking ``at least every three
years'' and all that follows thereafter and
inserting ``at least every 4 years, except that
strategic plans submitted by September 30,
2007, shall be updated and revised by September
30, 2010''; and
(B) by striking ``five years forward'' and
inserting ``six years forward''; and
(3) in subsection (c), by inserting a comma after
``section'' the second place it appears and adding
``including a strategic plan submitted by September 30,
2007, meeting the requirements of subsection (a)''.
(b) Budget Contents and Submission to Congress.--Paragraph
(28) of section 1105(a) of title 31, United States Code, is
amended by striking ``beginning with fiscal year 1999, a'' and
inserting ``beginning with fiscal year 2010, a biennial''.
(c) Performance Plans.--Section 1115 of title 31, United
States Code, is amended--
(1) in subsection (a)--
(A) in the matter before paragraph (1)--
(i) by striking ``section
1105(a)(29)'' and inserting ``section
1105(a)(28)''; and
(ii) by striking ``an annual'' and
inserting ``a biennial'';
(B) in paragraph (1) by inserting after
``program activity'' the following: ``for both
years 1 and 2 of the biennial plan'';
(C) in paragraph (5) by striking ``and''
after the semicolon;
(D) in paragraph (6) by striking the period
and inserting a semicolon; and inserting
``and'' after the inserted semicolon; and
(E) by adding after paragraph (6) the
following:
``(7) cover each fiscal year of the biennium
beginning with the first fiscal year of the next
biennial budget cycle.'';
(2) in subsection (d) by striking ``annual'' and
inserting ``biennial''; and
(3) in paragraph (6) of subsection (f) by striking
``annual'' and inserting ``biennial''.
(d) Managerial Accountability and Flexibility.--Section 9703
of title 31, United States Code, relating to managerial
accountability, is amended--
(1) in subsection (a)--
(A) in the first sentence by striking
``annual''; and
(B) by striking ``section 1105(a)(29)'' and
inserting ``section 1105(a)(28)'';
(2) in subsection (e)--
(A) in the first sentence by striking ``one
or'' before ``two years'';
(B) in the second sentence by striking ``a
subsequent year'' and inserting ``for a
subsequent 2-year period''; and
(C) in the third sentence by striking
``three'' and inserting ``four''.
(e) Strategic Plans.--Section 2802 of title 39, United States
Code, is amended--
(1) in subsection (a), by striking ``September 30,
1997'' and inserting ``September 30, 2007'';
(2) in subsection (b), by striking ``at least every
three years'' and inserting ``at least every 4 years
except that strategic plans submitted by September 30,
2007, shall be updated and revised by September 30,
2010'';
(3) in subsection (b), by striking ``five years
forward'' and inserting ``six years forward''; and
(4) in subsection (c), by inserting a comma after
``section'' the second place it appears and inserting
``including a strategic plan submitted by September 30,
2007, meeting the requirements of subsection (a)''.
(f) Performance Plans.--Section 2803(a) of title 39, United
States Code, is amended--
(1) in the matter before paragraph (1), by striking
``an annual'' and inserting ``a biennial'';
(2) in paragraph (1), by inserting after ``program
activity'' the following: ``for both years 1 and 2 of
the biennial plan'';
(3) in paragraph (5), by striking ``and'' after the
semicolon;
(4) in paragraph (6), by striking the period and
inserting ``; and''; and
(5) by adding after paragraph (6) the following:
``(7) cover each fiscal year of the biennium
beginning with the first fiscal year of the next
biennial budget cycle.''.
(g) Committee Views of Plans and Reports.--Section 301(d) of
the Congressional Budget Act (2 U.S.C. 632(d)) is amended by
adding at the end ``Each committee of the Senate or the House
of Representatives shall review the strategic plans,
performance plans, and performance reports, required under
section 306 of title 5, United States Code, and sections 1115
and 1116 of title 31, United States Code, of all agencies under
the jurisdiction of the committee. Each committee may provide
its views on such plans or reports to the Committee on the
Budget of the applicable House.''.
SEC. 129. BIENNIAL APPROPRIATION BILLS.
(a) In the House of Representatives.--Clause 2(a) of rule XXI
of the Rules of the House of Representatives is amended by
adding at the end the following new subparagraph:
``(3)(A) Except as provided by subdivision (B), an
appropriation may not be reported in a general appropriation
bill (other than a supplemental appropriation bill), and may
not be in order as an amendment thereto, unless it provides new
budget authority or establishes a level of obligations under
contract authority for each fiscal year of a biennium.
``(B) Subdivision (A) does not apply with respect to an
appropriation for a single fiscal year for any program,
project, or activity if the bill or amendment thereto
containing that appropriation includes a provision expressly
stating the following: `Congress finds that no additional
funding beyond one fiscal year will be required and the [Insert
name of applicable program, project, or activity] will be
completed or terminated after the amount provided has been
expended.'.
``(C) For purposes of paragraph (b), the statement set forth
in subdivision (B) with respect to an appropriation for a
single fiscal year for any program, project, or activity may be
included in a general appropriation bill or amendment
thereto.''.
(b) Conforming Amendment.--Clause 5(b)(1) of rule XXII of the
House of Representatives is amended by striking ``or (c)'' and
inserting ``or (3) or 2(c)''.
SEC. 130. ASSISTANCE BY FEDERAL AGENCIES TO STANDING COMMITTEES OF THE
SENATE AND THE HOUSE OF REPRESENTATIVES.
(a) Information Regarding Agency Appropriations Requests.--To
assist each standing committee of the House of Representatives
and the Senate in carrying out its responsibilities, the head
of each Federal agency which administers the laws or parts of
laws under the jurisdiction of such committee shall provide to
such committee such studies, information, analyses, reports,
and assistance as may be requested by the chairman and ranking
minority member of the committee.
(b) Information Regarding Agency Program Administration.--To
assist each standing committee of the House of Representatives
and the Senate in carrying out its responsibilities, the head
of any agency shall furnish to such committee documentation,
containing information received, compiled, or maintained by the
agency as part of the operation or administration of a program,
or specifically compiled pursuant to a request in support of a
review of a program, as may be requested by the chairman and
ranking minority member of such committee.
(c) Summaries by Comptroller General.--Within thirty days
after the receipt of a request from a chairman and ranking
minority member of a standing committee having jurisdiction
over a program being reviewed and studied by such committee
under this section, the Comptroller General of the United
States shall furnish to such committee summaries of any audits
or reviews of such program which the Comptroller General has
completed during the preceding six years.
(d) Congressional Assistance.--Consistent with their duties
and functions under law, the Comptroller General of the United
States, the Director of the Congressional Budget Office, and
the Director of the Congressional Research Service shall
continue to furnish (consistent with established protocols) to
each standing committee of the House of Representatives or the
Senate such information, studies, analyses, and reports as the
chairman and ranking minority member may request to assist the
committee in conducting reviews and studies of programs under
this section.
Subtitle D--Prevention of Government Shutdown
SEC. 141. AMENDMENT TO TITLE 31.
(a) In General.--Chapter 13 of title 31, United States Code,
is amended by inserting after section 1310 the following new
section:
``Sec. 1311. Continuing appropriations
``(a)(1) If any regular appropriation bill for a fiscal year
(or, if applicable, for each fiscal year in a biennium) does
not become law before the beginning of such fiscal year or a
joint resolution making continuing appropriations is not in
effect, there are appropriated, out of any money in the
Treasury not otherwise appropriated, and out of applicable
corporate or other revenues, receipts, and funds, such sums as
may be necessary to continue any project or activity for which
funds were provided in the preceding fiscal year--
``(A) in the corresponding regular appropriation Act
for such preceding fiscal year; or
``(B) if the corresponding regular appropriation bill
for such preceding fiscal year did not become law, then
in a joint resolution making continuing appropriations
for such preceding fiscal year.
``(2) Appropriations and funds made available, and authority
granted, for a project or activity for any fiscal year pursuant
to this section shall be at a rate of operations not in excess
of the lower of--
``(A) the rate of operations provided for in the
regular appropriation Act providing for such project or
activity for the preceding fiscal year;
``(B) in the absence of such an Act, the rate of
operations provided for such project or activity
pursuant to a joint resolution making continuing
appropriations for such preceding fiscal year;
``(C) the rate of operations provided for in the
regular appropriation bill as passed by the House of
Representatives or the Senate for the fiscal year in
question, except that the lower of these two versions
shall be ignored for any project or activity for which
there is a budget request if no funding is provided for
that project or activity in either version; or
``(D) the annualized rate of operations provided for
in the most recently enacted joint resolution making
continuing appropriations for part of that fiscal year
or any funding levels established under the provisions
of this Act.
``(3) Appropriations and funds made available, and authority
granted, for any fiscal year pursuant to this section for a
project or activity shall be available for the period beginning
with the first day of a lapse in appropriations and ending with
the earlier of--
``(A) the date on which the applicable regular
appropriation bill for such fiscal year becomes law
(whether or not such law provides for such project or
activity) or a continuing resolution making
appropriations becomes law, as the case may be; or
``(B) the last day of such fiscal year.
``(b) An appropriation or funds made available, or authority
granted, for a project or activity for any fiscal year pursuant
to this section shall be subject to the terms and conditions
imposed with respect to the appropriation made or funds made
available for the preceding fiscal year, or authority granted
for such project or activity under current law.
``(c) Appropriations and funds made available, and authority
granted, for any project or activity for any fiscal year
pursuant to this section shall cover all obligations or
expenditures incurred for such project or activity during the
portion of such fiscal year for which this section applies to
such project or activity.
``(d) Expenditures made for a project or activity for any
fiscal year pursuant to this section shall be charged to the
applicable appropriation, fund, or authorization whenever a
regular appropriation bill or a joint resolution making
continuing appropriations until the end of a fiscal year
providing for such project or activity for such period becomes
law.
``(e) This section shall not apply to a project or activity
during a fiscal year if any other provision of law (other than
an authorization of appropriations)--
``(1) makes an appropriation, makes funds available,
or grants authority for such project or activity to
continue for such period; or
``(2) specifically provides that no appropriation
shall be made, no funds shall be made available, or no
authority shall be granted for such project or activity
to continue for such period.
``(f) For purposes of this section, the term `regular
appropriation bill' means any annual appropriation bill making
appropriations, otherwise making funds available, or granting
authority, for any of the following categories of projects and
activities:
``(1) Agriculture, rural development, Food and Drug
Administration, and related agencies programs.
``(2) The Departments of Commerce, Justice, and
State, the Judiciary, and related agencies.
``(3) The Department of Defense.
``(4) The government of the District of Columbia and
other activities chargeable in whole or in part against
the revenues of the District.
``(5) Energy and water development.
``(6) Foreign operations, export financing, and
related programs.
``(7) The Department of Homeland Security.
``(8) The Department of the Interior and related
agencies.
``(9) The Departments of Labor, Health and Human
Services, and Education, and related agencies.
``(10) The Legislative Branch.
``(11) Military construction, family housing, and
base realignment and closure for the Department of
Defense.
``(12) The Departments of Transportation and
Treasury, and independent agencies.
``(13) The Departments of Veterans Affairs and
Housing and Urban Development, and sundry independent
agencies, boards, commissions, corporations, and
offices.''.
(b) Clerical Amendment.--The analysis of chapter 13 of title
31, United States Code, is amended by inserting after the item
relating to section 1310 the following new item:
``1311. Continuing appropriations.''.
Subtitle E--The Baseline
SEC. 151. ELIMINATION OF INFLATION ADJUSTMENT.
Section 257(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended--
(1) in paragraph (1) by striking ``for inflation as
specified in paragraph (5),''; and
(2) by striking paragraph (5) and redesignating
paragraph (6) as paragraph (5).
SEC. 152. THE PRESIDENT'S BUDGET.
(a) Paragraph (5) of section 1105(a) of title 31, United
States Code, is amended to read as follows:
``(5) except as provided in subsection (b) of this
section, estimated expenditures and appropriations for
the current year and estimated expenditures and
proposed appropriations the President decides are
necessary to support the Government in the fiscal year
for which the budget is submitted and the 4 fiscal
years following that year, and, except for detailed
budget estimates, the percentage change from the
current year to the fiscal year for which the budget is
submitted for estimated expenditures and for
appropriations.''.
(b) Section 1105(a)(6) of title 31, United States Code, is
amended to read as follows:
``(6) estimated receipts of the Government in the
current year and the fiscal year for which the budget
is submitted and the 4 fiscal years after that year
under--
``(A) laws in effect when the budget is
submitted; and
``(B) proposals in the budget to increase
revenues,
and the percentage change (in the case of each category
referred to in subparagraphs (A) and (B)) between the
current year and the fiscal year for which the budget
is submitted and between the current year and each of
the 9 fiscal years after the fiscal year for which the
budget is submitted.''.
(c) Section 1105(a)(12) of title 31, United States Code, is
amended to read as follows:
``(12) for each proposal in the budget for
legislation that would establish or expand a Government
activity or function, a table showing--
``(A) the amount proposed in the budget for
appropriation and for expenditure because of
the proposal in the fiscal year for which the
budget is submitted;
``(B) the estimated appropriation required
because of the proposal for each of the 4
fiscal years after that year that the proposal
will be in effect; and
``(C) the estimated amount for the same
activity or function, if any, in the current
fiscal year,
and, except for detailed budget estimates, the
percentage change (in the case of each category
referred to in subparagraphs (A), (B), and (C)) between
the current year and the fiscal year for which the
budget is submitted.''.
(d) Section 1105(a)(18) of title 31, United States Code, is
amended by inserting ``new budget authority and'' before
``budget outlays''.
(e) Section 1105(a) of title 31, United States Code, is
amended by adding at the end the following new paragraphs:
``(35) a comparison of levels of estimated
expenditures and proposed appropriations for each
function and subfunction in the current fiscal year and
the fiscal year for which the budget is submitted,
along with the proposed increase or decrease of
spending in percentage terms for each function and
subfunction.
``(36) a table on sources of growth in total direct
spending under current law and as proposed in this
budget submission for the budget year and the ensuing 9
fiscal years, which shall include changes in outlays
attributable to the following: cost-of-living
adjustments; changes in the number of program
recipients; increases in medical care prices,
utilization and intensity of medical care; and residual
factors.''.
(f) Section 1109(a) of title 31, United States Code, is
amended by inserting after the first sentence the following new
sentence: ``For discretionary spending, these estimates shall
assume the levels set forth in the discretionary spending
limits under section 251(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as adjusted, for the
appropriate fiscal years (and if no such limits are in effect,
these estimates shall assume the adjusted levels for the most
recent fiscal year for which such levels were in effect).''.
SEC. 153. THE CONGRESSIONAL BUDGET.
Section 301(e) of the Congressional Budget Act of 1974 (as
amended by section 103) is further amended--
(1) in paragraph (1), by inserting at the end the
following: ``The basis of deliberations in developing
such joint resolution shall be the estimated budgetary
levels for the preceding fiscal year. Any budgetary
levels pending before the committee and the text of the
joint resolution shall be accompanied by a document
comparing such levels or such text to the estimated
levels of the prior fiscal year. Any amendment offered
in the committee that changes a budgetary level and is
based upon a specific policy assumption for a program,
project, or activity shall be accompanied by a document
indicating the estimated amount for such program,
project, or activity in the current year.''; and
(2) in paragraph (2), by striking ``and'' at the end
of subparagraph (H) (as redesignated), by striking the
period and inserting ``; and'' at the end of
subparagraph (I) (as redesignated), and by adding at
the end the following new subparagraph:
``(J) a comparison of levels for the current
fiscal year with proposed spending and revenue
levels for the subsequent fiscal years along
with the proposed increase or decrease of
spending in percentage terms for each
function.''.
SEC. 154. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.
(a) The first sentence of section 202(e)(1) of the
Congressional Budget Act of 1974 is amended by inserting
``compared to comparable levels for the current year'' before
the comma at the end of subparagraph (A) and before the comma
at the end of subparagraph (B).
(b) Section 202(e)(1) of the Congressional Budget Act of 1974
is amended by inserting after the first sentence the following
new sentence: ``Such report shall also include a table on
sources of spending growth in total direct spending for the
budget year and the ensuing 4 fiscal years, which shall include
changes in outlays attributable to the following: cost-of-
living adjustments; changes in the number of program
recipients; increases in medical care prices, utilization and
intensity of medical care; and residual factors.''.
(c) Section 308(a)(1)(B) of the Congressional Budget Act of
1974 is amended by inserting ``and shall include a comparison
of those levels to comparable levels for the current fiscal
year'' before ``if timely submitted''.
SEC. 155. TREATMENT OF EMERGENCIES.
Section 257(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (as amended by section 151) is further
amended by adding at the end the following new paragraph:
``(7) Emergencies.--Budgetary resources for
emergencies shall be at the level provided in the
reserve fund for emergencies for that fiscal year
pursuant to section 301(a)(4) of the Congressional
Budget Act of 1974.''.
TITLE II--PUTTING A LID ON THE FEDERAL BUDGET
Subtitle A--Spending Safeguards on the Growth of Entitlements and
Mandatories
SEC. 201. SPENDING CAPS ON GROWTH OF ENTITLEMENTS AND MANDATORIES.
(a) Control of Entitlements and Mandatories.--The Balanced
Budget and Emergency Deficit Control Act of 1985 is amended by
adding after section 252 the following new section:
``SEC. 252A. ENFORCING CONTROLS ON DIRECT SPENDING.
``(a) Cap on Growth of Entitlements.--Effective for fiscal
year 2005 and for each ensuing fiscal year, the total level of
direct spending for all direct spending programs, projects, and
activities (excluding social security) for any such fiscal year
shall not exceed the total level of spending for all such
programs, projects, and activities for the previous fiscal year
after the direct spending for each such program, project, or
activity is increased by the higher of the change in the
Consumer Price Index for All Urban Consumers or the inflator
(if any) applicable to that program, project, or activity and
the growth in eligible population for such, project, or
activity.
``(b) Sequestration.--Within 15 days after Congress adjourns
to end a session (other than of the second session of the One
Hundred Eighth Congress), and on the same day as a
sequestration (if any) under section 251, there shall be a
sequestration to reduce the amount of direct spending for the
fiscal year beginning in the year the Congress adjourns by any
amount necessary to reduce such spending to the level set forth
in subsection (a) unless that amount is less than $250,000,000.
``(c) Uniform Reductions; Limitations.--The amount required
to be sequestered for the fiscal year under subsection (a)
shall be obtained from nonexempt direct spending accounts by
actions taken in the following order:
``(1) First.--The reductions in the programs
specified in section 256(a) (National Wool Act and
special milk), section 256(b) (student loans), and
section 256(c) (foster care and adoption assistance)
shall be made.
``(2) Second.--Any additional reductions that may be
required shall be achieved by reducing each remaining
nonexempt direct spending account by the uniform
percentage necessary to achieve those additional
reductions, except that--
``(A) the low-income programs specified in
section 256(d) shall not be reduced by more
than 2 percent;
``(B) the retirement and veterans benefits
specified in sections 256(f), (g), and (h)
shall not be reduced by more than 2 percent in
the manner specified in that section; and
``(C) the medicare programs shall not be
reduced by more than 2 percent in the manner
specified in section 256(i).
The limitations set forth in subparagraphs (A), (B),
and (C) shall be applied iteratively, and after each
iteration the uniform percentage applicable to all
other programs under this paragraph shall be increased
(if necessary) to a level sufficient to achieve the
reductions required by this paragraph.
``(d) Exclusion of Medicare Prescription Drug Program Until
Fully Operational.--For purposes of this section with respect
to the limitation under subsection (a) for a fiscal year before
fiscal year 2008, direct spending programs and direct spending
shall not be construed to include part D of title XVIII of the
Social Security Act (or spending under part C of such title
that is attributable to such part D).''.
(b) Table of Contents Amendment.--The table of contents set
forth in 250(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by adding after the item
relating to section 252 the following new item:
``Sec. 252A. Enforcing controls on direct spending.''.
SEC. 202. EXEMPT PROGRAMS AND ACTIVITIES.
Section 255 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:
``SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
``(a) Social Security Benefits; Tier I Railroad Retirement
Benefits; and Certain Medicare Benefits.--(1) Benefits payable
under the old-age, survivors, and disability insurance program
established under title II of the Social Security Act, and
benefits payable under section 3(a), 3(f)(3), 4(a), or 4(f) of
the Railroad Retirement Act of 1974, shall be exempt from
reduction under any order issued under this part.
``(2) Payments made under part A of title XVIII (relating to
part A medicare hospital insurance benefits) of the Social
Security Act and payments made under part C of such title
(relating to the Medicare Advantage program) insofar as they
are attributable to part A of such title shall be exempt from
reduction under any order issued under this part.
``(b) Descriptions and Lists.--The following budget accounts
or activities shall be exempt from sequestration:
``(1) net interest;
``(2) all payments to trust funds from excise taxes
or other receipts or collections properly creditable to
those trust funds;
``(3) all payments from one Federal direct spending
budget account to another Federal budget account; and
all intragovernmental funds including those from which
funding is derived primarily from other Government
accounts, except to the extent that such funds are
augmented by direct appropriations for the fiscal year
for which the order is in effect;
``(4) activities resulting from private donations,
bequests, or voluntary contributions to the Government;
``(5) payments from any revolving fund or trust-
revolving fund (or similar activity) that provides
deposit insurance or other Government insurance,
Government guarantees, or any other form of contingent
liability, to the extent those payments result from
contractual or other legally binding commitments of the
Government at the time of any sequestration;
``(6) credit liquidating and financing accounts;
``(7) the following accounts, which largely fulfill
requirements of the Constitution or otherwise make
payments to which the Government is committed:
``Administration of Territories, Northern
Mariana Islands Covenant grants (14-0412-0-1-
806);
``Armed Forces Retirement Home Trust Fund,
payment of claims (84-8930-0-7-705);
``Bureau of Indian Affairs, miscellaneous
payments to Indians (14-2303-0-1-452);
``Bureau of Indian Affairs, miscellaneous
trust funds, tribal trust funds (14-9973-0-7-
999);
``Claims, defense;
``Claims, judgments, and relief act (20-1895-
0-1-806);
``Compact of Free Association, economic
assistance pursuant to Public Law 99-658 (14-
0415-0-1-806);
``Compensation of the President (11-0001-0-1-
802);
``Customs Service, miscellaneous permanent
appropriations (20-9992-0-2-852);
``Eastern Indian land claims settlement fund
(14-2202-0-1-806);
``Farm Credit Administration, Limitation on
Administration Expenses (78-4131-0-3-351);
``Farm Credit System Financial Assistance
Corporation, interest payments (20-1850-0-1-
351);
``Internal Revenue collections of Puerto Rico
(20-5737-0-2-852);
``Panama Canal Commission, operating expenses
and capital outlay (95-5190-0-2-403);
``Payments of Vietnam and USS Pueblo
prisoner-of-war claims (15-0104-0-1-153);
``Payments to copyright owners (03-5175-0-2-
376);
``Payments to health care trust funds (75-
0580-0-1-571);
``Payments to social security trust funds
(75-0404-0-1-651);
``Payments to the United States territories,
fiscal assistance (14-0418-0-1-801);
``Payments to widows and heirs of deceased
Members of Congress (00-0215-0-1-801);
``Pension Benefit Guaranty Corporation Fund
(16-4204-0-3-601);
``Salaries of Article III judges;
``Washington Metropolitan Area Transit
Authority, interest payments (46-0300-0-1-401);
``(8) the following noncredit special, revolving, or
trust-revolving funds:
``Coinage profit fund (20-5811-0-2-803);
``Comptroller of the Currency;
``Director of the Office of Thrift
Supervision;
``Exchange Stabilization Fund (20-4444-0-3-
155);
``Federal Housing Finance Board;
``Foreign Military Sales trust fund (11-
82232-0-7-155);
``National Credit Union Administration,
central liquidating facility (25-4470-0-3-373);
``National Credit Union Administration,
credit union insurance fund (25-4468-0-3-373);
``National Credit Union Administration
operating fund (25-4056-0-3-373); and
``Resolution Trust Corporation Revolving Fund
(22-4055-0-3-373);
``(9) Thrift Savings Fund;
``(10) appropriations for the District of Columbia to
the extent they are appropriations of locally raised
funds;
``(11)(A) any amount paid as regular unemployment
compensation by a State from its account in the
Unemployment Trust Fund (established by section 904(a)
of the Social Security Act);
``(B) any advance made to a State from the Federal
unemployment account (established by section 904(g) of
such Act) under title XII of such Act and any advance
appropriated to the Federal unemployment account
pursuant to section 1203 of such Act; and
``(C) any payment made from the Federal Employees
Compensation Account (as established under section 909
of such Act) for the purpose of carrying out chapter 85
of title 5, United States Code, and funds appropriated
or transferred to or otherwise deposited in such
Account; and
``(12)(A) FDIC, Bank Insurance Fund (51-4064-0-3-
373);
``(B) FDIC, FSLIC Resolution Fund (51-4065-0-3-373);
and
``(C) FDIC, Savings Association Insurance Fund (51-
4066-0-3-373).
``(c) Federal Retirement and Disability Accounts.--The
following Federal retirement and disability accounts shall be
exempt from reduction under any order issued under this part:
``Civil service retirement and disability fund (24-
8135-0-7-602).
``Black Lung Disability Trust Fund (20-8144-0-7-601).
``Foreign Service Retirement and Disability Fund (19-
8186-0-7-602).
``District of Columbia Judicial Retirement and
Survivors Annuity Fund (20-8212-0-7-602).
``Judicial Survivors' Annuities Fund (10-8110-0-7-
602).
``Payments to the Railroad Retirement Accounts (60-
0113-0-1-601).
``Tax Court Judges Survivors Annuity Fund (23-8115-0-
7-602).
``Employees Life Insurance Fund (24-8424-0-8-602).
``(d) Federal Administrative Expenses.--
``(1) Notwithstanding any provision of law other than
paragraph (3), administrative expenses incurred by the
departments and agencies, including independent
agencies, of the Government in connection with any
program, project, activity, or account shall be subject
to reduction pursuant to any sequestration order,
without regard to any exemption, exception, limitation,
or special rule otherwise applicable with respect to
such program, project, activity, or account, and
regardless of whether the program, project, activity,
or account is self-supporting and does not receive
appropriations.
``(2) Payments made by the Government to reimburse or
match administrative costs incurred by a State or
political subdivision under or in connection with any
program, project, activity, or account shall not be
considered administrative expenses of the Government
for purposes of this section, and shall be subject to
sequestration to the extent (and only to the extent)
that other payments made by the Government under or in
connection with that program, project, activity, or
account are subject to that reduction or sequestration;
except that Federal payments made to a State as
reimbursement of administrative costs incurred by that
State under or in connection with the unemployment
compensation programs specified in subsection (a)(11)
shall be subject to reduction or sequestration under
this part notwithstanding the exemption otherwise
granted to such programs under that subsection.
``(3) Notwithstanding any other provision of law, the
administrative expenses of the following programs shall
be exempt from sequestration:
``(A) Comptroller of the Currency.
``(B) Federal Deposit Insurance Corporation.
``(C) Office of Thrift Supervision.
``(D) National Credit Union Administration.
``(E) National Credit Union Administration,
central liquidity facility.
``(F) Federal Retirement Thrift Investment
Board.
``(G) Resolution Funding Corporation.
``(H) Resolution Trust Corporation.
``(I) Board of Governors of the Federal
Reserve System.
``(e) Veterans' Programs.--The following programs shall be
exempt from reduction under any order issued under this part:
``General Post Funds (36-8180-0-7-705).
``Veterans Insurance and Indemnities (36-0120-0-1-
701).
``Service-Disabled Veterans Insurance Funds (36-4012-
0-3-701).
``Veterans Reopened Insurance Fund (36-4010-0-3-701).
``Servicemembers' Group Life Insurance Fund (36-4009-
0-3-701).
``Post-Vietnam Era Veterans Education Account (36-
8133-0-7-702).
``National Service Life Insurance Fund (36-8132-0-7-
701).
``United States Government Life Insurance Fund (36-
8150-0-7-701).
``Veterans Special Life Insurance Fund (36-8455-0-8-
701).
``(f) Optional Exemption of Defense and Homeland Security
Accounts.--
``(1) In general.--The President may, with respect to
any defense or homeland security account, exempt that
account from sequestration or provide for a lower
uniform percentage reduction than would otherwise
apply.
``(2) Limitation.--The President may not use the
authority provided by paragraph (1) unless the
President notifies the Congress of the manner in which
such authority will be exercised on or before the date
specified in section 254(a) for the budget year.''.
SEC. 203. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
(a) In General.--Section 256 of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as
follows:
``SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
``(a) National Wool Act and the Special Milk Program.--
Automatic spending increases are increases in outlays due to
changes in indexes in the following programs:
``(1) National Wool Act; and
``(2) Special milk program.
In those programs all amounts other than the automatic spending
increases shall be exempt from reduction under any
sequestration order.
``(b) Student Loans.--For all student loans under part B or D
of title IV of the Higher Education Act of 1965 made during the
period when a sequestration order under section 254 is in
effect as required by section 252 or 253, origination fees
under sections 438(c)(2) and 455(c) of that Act shall each be
increased by 0.50 percentage point.
``(c) Foster Care and Adoption Assistance Programs.--Any
sequestration order shall make the reduction otherwise required
under the foster care and adoption assistance programs
(established by part E of title IV of the Social Security Act)
only with respect to payments and expenditures made by States
in which increases in foster care maintenance payment rates or
adoption assistance payment rates (or both) are to take effect
during the fiscal year involved, and only to the extent that
the required reduction can be accomplished by applying a
uniform percentage reduction to the Federal matching payments
that each such State would otherwise receive under section 474
of that Act (for such fiscal year) for that portion of the
State's payments attributable to the increases taking effect
during that year. No State's matching payments from the
Government for foster care maintenance payments or for adoption
assistance maintenance payments may be reduced by a percentage
exceeding the applicable domestic sequestration percentage. No
State may, after the date of the enactment of this Act, make
any change in the timetable for making payments under a State
plan approved under part E of title IV of the Social Security
Act which has the effect of changing the fiscal year in which
expenditures under such part are made.
``(d) Low-Income Programs.--(1) Benefit payments or payments
to States or other entities for the programs listed in
paragraph (2) shall not be reduced by more than 2 percent under
any sequestration order. When reduced under an end-of-session
sequestration order, those benefit reductions shall occur
starting with the payment made at the start of January. When
reduced under a within-session sequestration order, those
benefit reductions shall occur starting with the next periodic
payment.
``(2) The programs referred to in paragraph (1) are the
following:
``Child Nutrition (12-3539-0-1-605).
``Food Stamp Programs (12-3505-0-1-605).
``Grants to States for Medicaid (75-0512-0-1-551).
``State Children's Health Insurance Fund (75-0515-0-
1-551).
``Supplemental Security Income Program (75-0406-0-1-
609).
``Temporary Assistance for Needy Families (75-1552-0-
1-609).
``Special supplemental nutrition program for women,
infants, and children (WIC) (12-3510-0-1-605).
``(e) Veterans' Medical Care.--The maximum permissible
reduction in budget authority for Veterans' medical care (36-
0160-0-1-703) for any fiscal year, pursuant to an order issued
under section 254, shall be 2 percent.
``(f) Federal Retirement Programs.--
``(1) For each of the programs listed in paragraph
(2) and except as provided in paragraph (3), monthly
(or other periodic) benefit payments shall be reduced
by the uniform percentage applicable to direct spending
sequestrations for such programs, which shall in no
case exceed 2 percent under any sequestration order.
When reduced under an end-of-session sequestration
order, those benefit reductions shall occur starting
with the payment made at the start of January or 7
weeks after the order is issued, whichever is later.
When reduced under a within-session sequestration
order, those benefit reductions shall occur starting
with the next periodic payment.
``(2) The programs subject to paragraph (1) are:
``Central Intelligence Agency Retirement and
Disability Fund (56-3400-0-1-054).
``Comptrollers General Retirement System (05-
0107-0-1-801)Payments to the Foreign Service
Retirement and Disability Fund (72-1036-0-1-
153).
``Judicial Officer' Retirement Fund (10-8122-
0-7-602).
``Claims Judges' Retirement Fund (10-8124-0-
7-602).
``Pensions for former Presidents (47-0105-0-
1-802).
``National Oceanic and Atmospheric
Administration Retirement (13-1450-0-1-306).
``Railroad Industry Pension Fund (60-8011-0-
7-601).
``Retired pay, Coast Guard (70-0602-0-1-403).
``Retirement pay and medical benefits for
commissioned officers, Public Health Service
(75-0379-0-1-551).
``Payments to Civil Service Retirement and
Disability Fund (24-0200-0-1-805).
``Payments to the Foreign Service Retirement
and Disability Fund (72-1036-0-1-153)
``Payments to Judiciary Trust Funds (10-0941-
0-1-752).
``(g) Veterans Programs.--To achieve the total percentage
reduction required by any order issued under this part, the
percentage reduction that shall apply to payments under the
following programs shall in no event exceed 2 percent:
``Canteen Service Revolving Fund (36-4014-0-3-705).
``Medical Center Research Organizations (36-4026-0-3-
703).
``Disability Compensation Benefits (36-0102-0-1-701).
``Education Benefits (36-0137-0-1-702).
``Vocational Rehabilitation and Employment Benefits
(36-0135-0-1-702).
``Pensions Benefits (36-0154-0-1-701).
``Burial Benefits (36-0139-0-1-701).
``Guaranteed Transitional Housing Loans For Homeless
Veterans Program Account (36-1119-0-1-704).
``Housing Direct Loan Financing Account (36-4127-0-1-
704).
``Housing Guaranteed Loan Financing Account (36-4129-
0-3-704).
``Vocational Rehabilitation and Education Direct Loan
Financing Account (36-4259-0-3-702).
``(h) Military Health and Retirement.--To achieve the total
percentage reduction in military retirement required by any
order issued under this part, the percentage reduction that
shall apply to payments under the Military retirement fund (97-
8097-0-7-602), payments to the military retirement fund (97-
0040-0-1-054), and the Defense Health Program (97-0130-0-1-051)
shall in no event exceed 2 percent.
``(i) Medicare Program.--
``(1) Calculation of reduction in individual payment
amounts.--To achieve the total percentage reduction in
those programs required by any order issued under this
part, the percentage reduction that shall apply to
payments under the health insurance programs under
title XVIII of the Social Security Act (other than
payments described in section 255(a)(2)) that are
subject to such order for services furnished after any
sequestration order is issued shall be such that the
reduction made in payments under that order shall
achieve the required total percentage reduction in
those payments for that fiscal year as determined on a
12-month basis. However, the percentage reduction under
any such program shall in no case exceed 2 percent
under any sequestration order.
``(2) Timing of application of reductions.--If a
reduction is made under paragraph (1) in payment
amounts pursuant to a sequestration order, the
reduction shall be applied to payment for services
furnished after the effective date of the order.
``(3) No increase in beneficiary charges in
assignment-related cases.--If a reduction in payment
amounts is made under paragraph (1) for services for
which payment under part B of title XVIII of the Social
Security Act is made on the basis of an assignment
described in section 1842(b)(3)(B)(ii), in accordance
with section 1842(b)(6)(B), or under the procedure
described in section 1870(f)(1) of such Act, the person
furnishing the services shall be considered to have
accepted payment of the reasonable charge for the
services, less any reduction in payment amount made
pursuant to a sequestration order, as payment in full.
``(4) Application to parts c and d.--The reductions
otherwise required under parts C and D of title XVIII
of the Social Security Act with respect to a fiscal
year shall be applied to the calendar year that begins
after the end of the fiscal year to which the
applicable sequestration order applies.
``(j) Federal Pay.--
``(1) In general.--For purposes of any order issued
under section 254, new budget authority to pay Federal
personnel shall be reduced by the applicable uniform
percentage, but no sequestration order may reduce or
have the effect of reducing the rate of pay to which
any individual is entitled under any statutory pay
system (as increased by any amount payable under
section 5304 of title 5, United States Code, or section
302 of the Federal Employees Pay Comparability Act of
1990) or the rate of any element of military pay to
which any individual is entitled under title 37, United
States Code, or any increase in rates of pay which is
scheduled to take effect under section 5303 of title 5,
United States Code, section 1009 of title 37, United
States Code, or any other provision of law.
``(2) Definitions.--For purposes of this subsection:
``(A) The term `statutory pay system' shall
have the meaning given that term in section
5302(1) of title 5, United States Code.
``(B) The term `elements of military pay'
means--
``(i) the elements of compensation of
members of the uniformed services
specified in section 1009 of title 37,
United States Code,
``(ii) allowances provided members of
the uniformed services under sections
403a and 405 of such title, and
``(iii) cadet pay and midshipman pay
under section 203(c) of such title.
``(C) The term `uniformed services' shall
have the meaning given that term in section
101(3) of title 37, United States Code.
``(k) Child Support Enforcement Program.--Any sequestration
order shall accomplish the full amount of any required
reduction in expenditures under sections 455 and 458 of the
Social Security Act by reducing the Federal matching rate for
State administrative costs under such program, as specified
(for the fiscal year involved) in section 455(a) of such Act,
to the extent necessary to reduce such expenditures by that
amount.
``(l) Extended Unemployment Compensation.--(1) A State may
reduce each weekly benefit payment made under the Federal-State
Extended Unemployment Compensation Act of 1970 for any week of
unemployment occurring during any period with respect to which
payments are reduced under an order issued under this title by
a percentage not to exceed the percentage by which the Federal
payment to the State under section 204 of such Act is to be
reduced for such week as a result of such order.
``(2) A reduction by a State in accordance with subparagraph
(A) shall not be considered as a failure to fulfill the
requirements of section 3304(a)(11) of the Internal Revenue
Code of 1954.
``(m) Commodity Credit Corporation.--
``(1) Powers and authorities of the commodity credit
corporation.--This title shall not restrict the
Commodity Credit Corporation in the discharge of its
authority and responsibility as a corporation to buy
and sell commodities in world trade, to use the
proceeds as a revolving fund to meet other obligations
and otherwise operate as a corporation, the purpose for
which it was created.
``(2) Reduction in payments made under contracts.--
(A) Payments and loan eligibility under any contract
entered into with a person by the Commodity Credit
Corporation prior to the time any sequestration order
has been issued shall not be reduced by an order
subsequently issued. Subject to subparagraph (B), after
any sequestration order is issued for a fiscal year,
any cash payments made by the Commodity Credit
Corporation--
``(i) under the terms of any one-year
contract entered into in or after such fiscal
year and after the issuance of the order; and
``(ii) out of an entitlement account,
to any person (including any producer, lender, or
guarantee entity) shall be subject to reduction under
the order.
``(B) Each contract entered into with producers or
producer cooperatives with respect to a particular crop
of a commodity and subject to reduction under
subparagraph (A) shall be reduced in accordance with
the same terms and conditions. If some, but not all,
contracts applicable to a crop of a commodity have been
entered into prior to the issuance of any sequestration
order, the order shall provide that the necessary
reduction in payments under contracts applicable to the
commodity be uniformly applied to all contracts for
succeeding crops of the commodity, under the authority
provided in paragraph (3).
``(3) Delayed reduction in outlays permissible.--
Notwithstanding any other provision of this title, if
any sequestration order is issued with respect to a
fiscal year, any reduction under the order applicable
to contracts described in paragraph (2) may provide for
reductions in outlays for the account involved to occur
in the fiscal years following the fiscal year to which
the order applies.
``(4) Uniform percentage rate of reduction and other
limitations.--All reductions described in paragraph (2)
that are required to be made in connection with any
sequestration order with respect to a fiscal year--
``(A) shall be made so as to ensure that
outlays for each program, project, activity, or
account involved are reduced by a percentage
rate that is uniform for all such programs,
projects, activities, and accounts, and may not
be made so as to achieve a percentage rate of
reduction in any such item exceeding the rate
specified in the order; and
``(B) with respect to commodity price support
and income protection programs, shall be made
in such manner and under such procedures as
will attempt to ensure that--
``(i) uncertainty as to the scope of
benefits under any such program is
minimized;
``(ii) any instability in market
prices for agricultural commodities
resulting from the reduction is
minimized; and
``(iii) normal production and
marketing relationships among
agricultural commodities (including
both contract and non-contract
commodities) are not distorted.
In meeting the criterion set out in clause
(iii) of subparagraph (B) of the preceding
sentence, the President shall take into
consideration that reductions under an order
may apply to programs for two or more
agricultural commodities that use the same type
of production or marketing resources or that
are alternative commodities among which a
producer could choose in making annual
production decisions.
``(5) Certain authority not to be limited.--Nothing
in this title shall limit or reduce in any way any
appropriation that provides the Commodity Credit
Corporation with funds to cover the Corporation's net
realized losses.
``(n) Postal Service Fund.--Notwithstanding any other
provision of law, any sequestration of the Postal Service Fund
shall be accomplished by a payment from that Fund to the
General Fund of the Treasury, and the Postmaster General of the
United States shall make the full amount of that payment during
the fiscal year to which the presidential sequestration order
applies.
``(o) Effects of Sequestration.--The effects of sequestration
shall be as follows:
``(1) Budgetary resources sequestered from any
account other than an entitlement trust, special, or
revolving fund account shall revert to the Treasury and
be permanently canceled.
``(2) Except as otherwise provided, the same
percentage sequestration shall apply to all programs,
projects, and activities within a budget account (with
programs, projects, and activities as delineated in the
appropriation Act or accompanying report for the
relevant fiscal year covering that account, or for
accounts not included in appropriation Acts, as
delineated in the most recently submitted President's
budget).
``(3) Administrative regulations or similar actions
implementing a sequestration shall be made within 120
days of the sequestration order. To the extent that
formula allocations differ at different levels of
budgetary resources within an account, program,
project, or activity, the sequestration shall be
interpreted as producing a lower total appropriation,
with that lower appropriation being obligated as though
it had been the pre-sequestration appropriation and no
sequestration had occurred.
``(4) Except as otherwise provided, obligations in
sequestered direct spending accounts shall be reduced
in the fiscal year in which a sequestration occurs and
in all succeeding fiscal years.
``(5) If an automatic spending increase is
sequestered, the increase (in the applicable index)
that was disregarded as a result of that sequestration
shall not be taken into account in any subsequent
fiscal year.
``(6) Except as otherwise provided, sequestration in
accounts for which obligations are indefinite shall be
taken in a manner to ensure that obligations in the
fiscal year of a sequestration and succeeding fiscal
years are reduced, from the level that would actually
have occurred, by the applicable sequestration
percentage.''.
(b) Conforming Amendment.--The table of contents set forth in
250(c) of the Balanced Budget and Emergency Deficit Control Act
of 1985 is amended by amending the item relating to section 256
to read as follows:
``Sec. 256. Exceptions, limitations, and special rules.''.
SEC. 204. POINT OF ORDER.
(a) Entitlement Point of Order.--Section 312 of the
Congressional Budget Act of 1974 is amended by adding at the
end the following new subsection:
``(g) Entitlement Point of Order.--It shall not be in order
in the House of Representatives or the Senate to consider any
bill, joint resolution, amendment, or conference report that--
``(1) increases aggregate level of direct spending
for any ensuing fiscal year or
``(2) includes any provision that has the effect of
modifying the application of section 252A of the
Balanced Budget and Emergency Deficit Control Act of
1985 to any entitlement program subject to
sequestration or exempt from sequestration under such
Act.''.
SEC. 205. TECHNICAL AND CONFORMING AMENDMENTS.
The Balanced Budget and Emergency Deficit Control Act of 1985
is amended as follows:
(1) Section 251(a)(1) is amended by inserting ``,
section 252A,'' after ``section 252''.
(2) Section 254(c)(4)(B) is amended by inserting ``or
section 252A'' after ``section 252''.
(3) Section 254(c) is amended by redesignating
paragraph (5) as paragraph (6) and by inserting after
paragraph (4) the following new paragraph:
``(5) Direct spending control sequestration
reports.--The preview reports shall set forth, for the
current year and the budget year, estimates for each of
the following:
``(A) The total level of direct spending for
all programs, projects, and activities
(excluding social security).
``(B) The sequestration percentage or (if the
required sequestration percentage is greater
than the maximum allowable percentage for
medicare) percentages necessary to comply with
section 252A.''.
(4) Section 254(f) is amended by redesignating
paragraphs (4) and (5) as paragraphs (5) and (6) and by
inserting after paragraph (3) the following new
paragraph:
``(4) Direct spending control sequestration
reports.--The final reports shall contain all the
information required in the direct spending control
sequestration preview reports. In addition, these
reports shall contain, for the budget year, for each
account to be sequestered, estimates of the baseline
level of sequesterable budgetary resources and
resulting outlays and the amount of budgetary resources
to be sequestered and resulting outlay reductions. The
reports shall also contain estimates of the effects on
outlays of the sequestration in each outyear for direct
spending programs.''.
(5) Section 258C(a)(1) is amended by inserting ``,
252A,'' after ``section 252''.
SEC. 206. ESTABLISHMENT OF FAMILY BUDGET PROTECTION MANDATORY ACCOUNT.
(a) Budget Protection Mandatory Account.--Title III of the
Congressional Budget Act of 1974 (as amended by section 521) is
further amended by adding at the end the following new
sections:
``BUDGET PROTECTION MANDATORY ACCOUNT
``Sec. 320. (a) Establishment of Account.--The chairman of
the Committee on the Budget of the House of Representatives and
of the Senate shall each maintain an account to be known as the
`Budget Protection Mandatory Account'. The Account shall be
divided into entries corresponding to the House or Senate
committees, as applicable, that received allocations under
section 302(a) in the most recently adopted concurrent
resolution on the budget, except that it shall not include the
Committee on Appropriations of that House and each entry shall
consist of the `First Year Budget Protection Balance' and the
`Five Year Budget Protection Balance'.
``(b) Components.--Each entry shall consist only of amounts
credited to it under subsection (c). No entry of a negative
amount shall be made.
``(c) Crediting of Amounts to Account.--(1) Whenever a Member
or Senator, as the case may be, offers an amendment to a bill
that reduces the amount of mandatory budget authority provided
either under current law or proposed to be provided by the bill
under consideration, that Member or Senator may state the
portion of such reduction achieved in the first year covered by
the most recently adopted concurrent resolution on the budget
and in addition the portion of such reduction achieved in the
first five years covered by the most recently adopted
concurrent resolution on the budget that shall be--
``(A) credited to the First Year Budget Protection
Balance and the Five Year Budget Protection Balance in
the House or Senate, as applicable;
``(B) used to offset an increase in other new budget
authority;
``(C) allowed to remain within the applicable section
302(a) allocation; or
``(D) used to offset a decrease in receipts.
If no such statement is made, the amount of reduction in new
budget authority resulting from the amendment shall be credited
to the First Year Budget Protection Balance and the Five Year
Budget Protection Balance, as applicable, if the amendment is
agreed to.
``(2) Except as provided by paragraph (3), the chairman of
the Committee on the Budget of the House or Senate, as
applicable, shall, upon the engrossment of any bill, other than
an appropriation bill, by the House or Senate, as applicable,
credit to the applicable entry balances amounts of new budget
authority and outlays equal to the net amounts of reductions in
budget authority and in outlays resulting from amendments
agreed to by that House to that bill.
``(3) When computing the net amounts of reductions in budget
authority and in outlays resulting from amendments agreed to by
the House or Senate, as applicable, to a bill, the chairman of
the Committee on the Budget of that House shall only count
those portions of such amendments agreed to that were so
designated by the Members or Senators offering such amendments
as amounts to be credited to the First Year Budget Protection
Balance and the Five Year Budget Protection Balance, or that
fall within the last sentence of paragraph (1).
``(4) The chairman of the Committee on the Budget of the
House and of the Senate shall each maintain a running tally of
the amendments adopted reflecting increases and decreases of
budget authority in the bill as reported to its House. This
tally shall be available to Members or Senators during
consideration of any bill by that House.
``(d) Calculation of Lock-Box Savings in House and Senate.--
For the purposes of enforcing section 302(a), upon the
engrossment of any bill, other than an appropriation bill, by
the House or Senate, as applicable, the amount of budget
authority and outlays calculated pursuant to subsection (c)(3)
shall be counted against the 302(a) allocation provided to the
applicable committee or committees of that House which reported
the bill as if the amount calculated pursuant to subsection
(c)(3) was included in the bill just engrossed.
``(e) Definition.--As used in this section, the term
`appropriation bill' means any general or special appropriation
bill, and any bill or joint resolution making supplemental,
deficiency, or continuing appropriations through the end of
fiscal year 2005 or any subsequent fiscal year, as the case may
be.''.
Subtitle B--Discretionary Spending Limits
SEC. 211. ENFORCING DISCRETIONARY SPENDING LIMITS.
(a) Discretionary Spending Limits.--Sections 251(b) and (c)
of the Balanced Budget and Emergency Deficit Control of Act of
1985 are amended to read as follows:
``(b) Discretionary Spending Limit.--As used in this part,
the term `discretionary spending limit' means--
``(1) with respect to fiscal year 2005--
``(A) $864,261,000,000 in new budget
authority of which no more than
$400,625,000,000 shall be for the nondefense
category; and
``(B) $850,495,800,000 in outlays of which no
more than $433,158,400,000 shall be for the
nondefense category;
``(2) with respect to fiscal year 2006--
``(A) $838,669,000,000 in new budget
authority of which no more than
$409,038,100,000 shall be for the nondefense
category; and
``(B) $872,471,400,000 in outlays of which no
more than $448,440,900,000 shall be for the
nondefense category;
``(3) with respect to fiscal year 2007--
``(A) $856,281,000,000 in new budget
authority of which no more than
$417,627,900,000 shall be for the nondefense
category; and
``(B) $886,373,800,000 in outlays of which no
more than $458,828,900,000 shall be for the
nondefense category;
``(4) with respect to fiscal year 2008--
``(A) $874,263,000,000 in new budget
authority of which no more than
$426,398,100,000 shall be for the nondefense
category; and
``(B) $907,923,200,000 in outlays of which no
more than $466,518,700,000 shall be for the
nondefense category;
``(5) with respect to fiscal year 2009--
``(A) $892,622,000,000 in new budget
authority of which no more than
$435,352,500,000 shall be for the nondefense
category; and
``(B) $922,436,600,000 in outlays of which no
more than $472,403,700,000 shall be for the
nondefense category;
``(6) with respect to fiscal year 2010--
``(A) $911,367,000,000 in new budget
authority of which no more than
$444,494,900,000 shall be for the nondefense
category; and
``(B) $942,949,400,000 in outlays of which no
more than $483,388,200,000 shall be for the
nondefense category;
``(7) with respect to fiscal year 2011--
``(A) $930,506,000,000 in new budget
authority of which no more than
$453,829,300,000 shall be for the nondefense
category; and
``(B) $966,467,600,000 in outlays of which no
more than $492,649,700,000 shall be for the
nondefense category;
``(8) with respect to fiscal year 2012--
``(A) $950,047,000,000 in new budget
authority of which no more than
$463,359,700,000 shall be for the nondefense
category; and
``(B) $977,831,100,000 in outlays of which no
more than $502,049,800,000 shall be for the
nondefense category;
``(9) with respect to fiscal year 2013--
``(A) $969,998,000,000 in new budget
authority of which no more than
$473,090,200,000 shall be for the nondefense
category; and
``(B) $1,001,230,000,000 in outlays of which
no more than $511,597,600,000 shall be for the
nondefense category;
``(10) with respect to fiscal year 2014--
``(A) $990,368,000,000 in new budget
authority of which no more than
$483,025,100,000 shall be for the nondefense
category; and
``(B) $1,020,567,000,000 in outlays of which
no more than $521,375,000,000 shall be for the
nondefense category;''.
(b) Discretionary Spending Limit Point of Order.--Section 312
of the Congressional Budget Act of 1974 (as amended by section
214(a)) is further amended by adding at the end the following
new subsection:
``(h) Discretionary Spending Limit Point of Order.--It shall
not be in order in the House of Representatives or the Senate
to consider any bill, joint resolution, amendment, or
conference report that--
``(1) increases the discretionary spending limits for
any ensuing fiscal year after the budget year; or
``(2) would cause the discretionary spending limits
for the budget year to be breached.''.
(c) Advance Appropriation Point of Order.--Section 312 of the
Congressional Budget Act of 1974 (as amended by this section)
is further amended by adding at the end the following new
subsection:
``(i) Advance Appropriation Point of Order.--It shall not be
in order in the House of Representatives or the Senate to
consider any appropriation bill or joint resolution, or
amendment thereto or conference report thereon, that provides
advance discretionary new budget authority that first becomes
available for any fiscal year after the budget year at an
amount for any program, project, or activity above the amount
of appropriations for fiscal year 2004 for such program,
project, or activity.''.
SEC. 212. ESTABLISHMENT OF FAMILY BUDGET PROTECTION DISCRETIONARY
ACCOUNT.
(a) Budget Protection Mandatory Account.--Title III of the
Congressional Budget Act of 1974 is amended by adding at the
end the following new section:
``BUDGET PROTECTION MANDATORY ACCOUNT
``Sec. 321. (a) Establishment of Account.--The chairman of
the Committee on the Budget of the House of Representatives and
of the Senate shall each maintain an account to be known as the
`Budget Protection Mandatory Account'. The Account shall be
divided into entries corresponding to the House or Senate
committees, as applicable, that received allocations under
section 302(a) in the most recently adopted concurrent
resolution on the budget, except that it shall not include the
Committee on Appropriations of that House and each entry shall
consist of the `First Year Budget Protection Balance' and the
`Five Year Budget Protection Balance'.
``(b) Components.--Each entry shall consist only of amounts
credited to it under subsection (c). No entry of a negative
amount shall be made.
``(c) Crediting of Amounts to Account.--(1) Whenever a Member
or Senator, as the case may be, offers an amendment to a bill
that reduces the amount of mandatory budget authority provided
either under current law or proposed to be provided by the bill
under consideration, that Member or Senator may state the
portion of such reduction achieved in the first year covered by
the most recently adopted concurrent resolution on the budget
and in addition the portion of such reduction achieved in the
first five years covered by the most recently adopted
concurrent resolution on the budget that shall be--
``(A) credited to the First Year Budget Protection
Balance and the Five Year Budget Protection Balance in
the House or Senate, as applicable;
``(B) used to offset an increase in other new budget
authority;
``(C) allowed to remain within the applicable section
302(a) allocation; or
``(D) used to offset a decrease in receipts.
If no such statement is made, the amount of reduction in new
budget authority resulting from the amendment shall be credited
to the First Year Budget Protection Balance and the Five Year
Budget Protection Balance, as applicable, if the amendment is
agreed to.
``(2) Except as provided by paragraph (3), the chairman of
the Committee on the Budget of the House or Senate, as
applicable, shall, upon the engrossment of any bill, other than
an appropriation bill, by the House or Senate, as applicable,
credit to the applicable entry balances amounts of new budget
authority and outlays equal to the net amounts of reductions in
budget authority and in outlays resulting from amendments
agreed to by that House to that bill.
``(3) When computing the net amounts of reductions in budget
authority and in outlays resulting from amendments agreed to by
the House or Senate, as applicable, to a bill, the chairman of
the Committee on the Budget of that House shall only count
those portions of such amendments agreed to that were so
designated by the Members or Senators offering such amendments
as amounts to be credited to the First Year Budget Protection
Balance and the Five Year Budget Protection Balance, or that
fall within the last sentence of paragraph (1).
``(4) The chairman of the Committee on the Budget of the
House and of the Senate shall each maintain a running tally of
the amendments adopted reflecting increases and decreases of
budget authority in the bill as reported to its House. This
tally shall be available to Members or Senators during
consideration of any bill by that House.
``(d) Calculation of Lock-Box Savings in House and Senate.--
For the purposes of enforcing section 302(a), upon the
engrossment of any bill, other than an appropriation bill, by
the House or Senate, as applicable, the amount of budget
authority and outlays calculated pursuant to subsection (c)(3)
shall be counted against the 302(a) allocation provided to the
applicable committee or committees of that House which reported
the bill as if the amount calculated pursuant to subsection
(c)(3) was included in the bill just engrossed.
``(e) Definition.--As used in this section, the term
`appropriation bill' means any general or special appropriation
bill, and any bill or joint resolution making supplemental,
deficiency, or continuing appropriations through the end of
fiscal year 2005 or any subsequent fiscal year, as the case may
be.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by inserting after the item
relating to section 319 the following new items:
``Sec. 320. Family budget protection mandatory account.
``Sec. 321. Family budget protection discretionary account.''.
SEC. 213. REVENUE ADJUSTMENT.
If an amendment is designated to be used to offset a decrease
in receipts for a fiscal year pursuant to section 320(c)(1)(D)
or section 321(c)(1)(D) of the Congressional Budget Act of
1974, then the applicable level of revenues for such fiscal
year for purposes of section 311(a) of such Act shall be
reduced by the amount of such amendment.
Subtitle C--Long-term Unfunded Obligations
SEC. 221. LONG-TERM UNFUNDED OBLIGATIONS.
(a) In General.--Title IV of the Congressional Budget Act of
1974 is amended by adding at the end the following:
PART C--LONG-TERM UNFUNDED OBLIGATIONS
``SEC. 441. ANALYSIS OF LONG-TERM UNFUNDED OBLIGATIONS.
``Beginning in fiscal year 2006, the President's budget shall
include an analysis of long-term unfunded obligations. This
analysis shall include:
``(1) An analysis of the impact of long-term unfunded
obligations in applicable entitlement programs on the
long-term level of unified budget outlays and the
unified budget surplus or deficit, in relation to the
projected level of the Gross Domestic Product.
``(2) A report on the impact of legislation enacted
during the previous session of Congress that increases
the long-term unfunded obligation in any applicable
group of entitlement program.
``(3) An analysis of the impact of legislation
proposed in the President's budget on the long-term
unfunded obligation in any applicable entitlement
program.
``SEC. 442. POINT OF ORDER AGAINST LEGISLATION INCREASING LONG-TERM
UNFUNDED OBLIGATIONS.
``It shall not be in order in the House of Representatives or
in the Senate to consider any bill, joint resolution, motion,
amendment, or conference report that would increase the long-
term unfunded obligation in any applicable group of entitlement
programs.
``SEC. 443. STANDARD FOR DETERMINING INCREASE IN LONG-TERM UNFUNDED
OBLIGATION.
``For the purpose of this part, legislation shall be
considered to increase the long-term unfunded obligation of an
applicable group of entitlement programs if it either--
``(1) increases the excess of the discounted present
value of the expenditures of programs in the group
above the discounted present value of the dedicated
receipts of programs in the group over a long-term
estimating period by more than an applicable threshold;
or
``(2) increases the dollar level of the expenditures
of programs in the group above the dedicated receipts
of programs in the group above the dedicated receipts
of programs in the group in the last year of the
estimating period by more than the applicable
threshold.
``SEC. 444. LONG-TERM UNFUNDED OBLIGATION ANALYSES BY CONGRESSIONAL
BUDGET OFFICE.
The Director of the Congressional Budget Office shall, to the
extent practicable, prepare for each bill or resolution of a
public character reported by any committee of the House of
Representatives or the Senate (except the Committee on
Appropriations of each House), and submit to such committee--
``(1) an estimate of any increase of the long-term
unfunded obligation of any applicable entitlement
program which would be incurred in carrying out such
bill or resolution as measured by the increase of the
excess of the discounted present value of the
expenditures of such program above the discounted
present value of the dedicated receipts of such program
over a long-term estimating period by more than an
applicable threshold; and
``(2) an estimate of any increase in the dollar level
of the expenditures of such program above the dedicated
receipts of such program above the dedicated receipts
of such program in the last year of the estimating
period by more than the applicable threshold.
The estimates and description so submitted shall be included in
the report accompanying such bill or resolution if timely
submitted to such committee before such report is filed.
``SEC. 445. DEFINITIONS.
``As used in this part--
``(1) the term `applicable entitlement program' shall
be defined as any one of the following programs:
``(A) Old Age, Survivors, and Disability
Insurance.
``(B) Medicare (combined hospital insurance
and supplemental medical insurance).
``(C) Civilian retirement and disability
(combined Civil Service Retirement System and
Federal Employees Retirement System).
``(D) Foreign Service Retirement and
Disability (combined Foreign Service Retirement
and Disability System and Foreign Service
Pension System).
``(E) Retired Employees Health Benefits.
``(F) Military Retirement System.
``(G) Uniformed Services Retiree Health Care
System.
``(H) Railroad Retirement System (combined
Rail Industry Pension Fund, Social Security
Equivalent Benefit Account, and National
Railroad Retirement Investment Trust).
``(I) Supplemental Security Income (SSI).
``(J) For estimates made on or after January
1, 2006, veterans disability compensation.
``(K) Any other entitlement program with
regularly available long-term estimates.
``(2) The term `entitlement program with regularly
available long-term estimates' means a program for
which the Director of the Congressional Budget Office,
in consultation with the Committees on the Budget of
the House of Representatives and the Senate and the
Director of the Office of Management and Budget, has
determined that it is feasible to make long-term
estimates of expenditures and dedicated receipts based
on explicit demographic, economic, and other estimating
assumptions. The Director shall notify the House and
Senate Committees on the Budget in writing, whenever he
or she makes such a determination.
``(3) The term `applicable group of entitlement
programs' shall be defined as any of the following:
``(A) Old Age, Survivors, and Disability
Insurance.
``(B) All applicable entitlement programs
except Old Age, Survivors, and Disability
Insurance.
``(4) The term `long-term estimating period' shall be
defined as 75 years, starting with the current year,
for all applicable entitlement programs except for Old
Age, Survivors, and Disability Insurance. For Old Age,
Survivors, and Disability Insurance, the term shall be
defined as the infinite period of years utilized in the
most recent annual report of the Board of Trustees
provided pursuant to section 201(c)(2) of the Social
Security Act.
``(5) The term `last year of the estimating period'
shall be defined as the 75th year of the long-term
estimating period.
``(6) The term `dedicated receipts' shall be defined,
for all applicable entitlement programs other than
Medicare, as taxes and fees received from the public,
payments received from Federal agencies on behalf of
Federal agency employees who are participants in the
program, transfers received by the program under
section 7(c)(2) of the Railroad Retirement Act of 1974
(45 U.S.C. 231f(c)(2)), and transfers from the general
fund of amounts equivalent to income tax receipts under
section 86 of the Internal Revenue Code. Dedicated
receipts shall not include payments from the general
fund to amortize a program's unfunded liability or
payments of interest on a program's trust fund
holdings. For Medicare, `dedicated receipts' shall be
defined according to section 801(c)(3) of the Medicare
Prescription Drug, Improvement, and Modernization Act
of 2003.
``(7) The term `expenditures' shall be defined, for
all applicable entitlement programs other than
Medicare, to include benefit payments, administrative
expenses to the extent paid from a dedicated fund, and
transfers to other programs made under section 7(c)(2)
of the Railroad Retirement Act of 1974 (45 U.S.C.
231f(c)(2)). For Medicare, `expenditures' shall be
defined according to section 801(c)(4) of the Medicare
prescription Drug, Improvement, and Modernization Act
of 2003.
``(8) The term `applicable threshold' shall be
defined as:
``(A) For a group of applicable entitlement
programs over a long-term estimating period--
``(i) 0.02 percent of the present
value of the taxable payroll of the
group of programs over the estimating
period, for legislation affecting Old
Age, Survivors, and Disability
Insurance or Medicare; and
``(ii) 1 percent of the present value
of the expenditures over the estimating
period of the programs in the group
that are affected by the legislation.
``(B) For a group of applicable entitlement
programs in the last year of the estimating
period--
``(i) 0.02 percent of the taxable
payroll of the group of programs in
that year, for legislation affecting
Old Age, Survivors, and Disability
Insurance or Medicare;
``(ii) 0.01 percent of Gross Domestic
Product in that year; or
``(iii) 1 percent of the expenditures
in that year of the programs in the
group that are affected by the
legislation.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by adding after the item
relating to section 428 the following:
`Part C--Long-Term Unfunded Obligations
``Sec. 441. Analysis of long-term unfunded obligations.
``Sec. 442. Point of order against legislation increasing long-term
unfunded obligations.
``Sec. 443. Standard for determining increase in long-term unfunded
obligation.
``Sec. 444. Long-term unfunded obligation analyses by congressional
budget office.
``Sec. 445. Definitions.
SEC. 222. POINTS OF ORDER.
Section 904 of the Congressional Budget Act of 1974 is
amended as follows:
(1) Subsection (c)(1) is amended by adding ``442,''
after ``310(d)(2), 313,''.
(2) Subsection (d)(2) is amended by adding ``442,''
after ``310(d)(2), 313,''.
SEC. 223. SOCIAL SECURITY.
Section 13302(a) of subtitle C of the Budget Enforcement Act
of 1990 is amended to read as follows:
``(a) In General.--It shall be not be in order in the House
of Representatives to consider any bill, or joint resolution,
as reported, or any amendment thereto or conference report
thereon, if, upon enactment, such legislation under
consideration would increase the long-term unfunded obligation
of the OASDI program, as defined in section 443 of the
Congressional Budget Act of 1974.''.
TITLE III--COMBATING WASTE, FRAUD, AND ABUSE.
Subtitle A--Sunsetting
SEC. 301. REAUTHORIZATION OF DISCRETIONARY PROGRAMS AND UNEARNED
ENTITLEMENTS.
(a) Fiscal Year 2008.--Effective October 1, 2007, spending
authority for each unearned entitlement and high-cost
discretionary spending program is frozen at then current levels
unless such spending authority is reauthorized after the date
of enactment of this Act.
(b) Fiscal Year 2009.--Effective October 1, 2008, spending
authority for each discretionary spending program (not
including high-cost discretionary spending programs) is frozen
at then current levels unless such spending authority is
reauthorized after the date of enactment of this Act.
(c) Definitions.--For purposes of this title--
(1) the term ``unearned entitlement'' means an
entitlement not earned by service or paid for in total
or in part by assessments or contributions such as
Social Security, veterans' benefits, retirement
programs, and medicare; and
(2) the term ``high-cost discretionary program''
means the most expensive one-third of discretionary
program within each budget function account.
SEC. 302. POINT OF ORDER.
(a) In General.--It shall not be in order in the House of
Representatives or the Senate to consider any bill, joint
resolution, amendment, or conference report that includes any
provision that appropriates funds above current levels unless
such appropriation has been previously authorized by law.
(b) Waiver or Suspension.--This section may be waived or
suspended in the House of Representatives or the Senate only by
the affirmative vote of two-thirds of the Members, duly chosen
and sworn.
SEC. 303. DECENNIAL SUNSETTING.
(a) First Decennial Census Year.--Effective on the first day
of the fiscal year beginning in the first decennial census year
after the year 2010 and each 10 years thereafter, the spending
authority described in section 301(a) is terminated unless such
spending authority is reauthorized after the last date the
spending authority was required to be reauthorized under this
title.
(b) First Decennial Census Year.--Effective on the first day
of the fiscal year beginning in the year after the first
decennial census year after the year 2010 and each 10 years
thereafter, the spending authority described in section 301(b)
is terminated unless such spending authority is reauthorized
after the last date the spending authority was required to be
reauthorized under this title.
Subtitle B--Enhanced Rescissions of Budget Authority Identified by the
President as Wasteful Spending
SEC. 311. ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS.
(a) In General.--Part B of title X of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C. 681 et
seq.) is amended by redesignating sections 1013 through 1017 as
sections 1014 through 1018, respectively, and by inserting
after section 1012 the following new section:
``ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS
``Sec. 1013. (a) Proposed Rescission of Budget Authority
Identified as Wasteful Spending.--The President may propose, at
the time and in the manner provided in subsection (b), the
rescission of any budget authority provided in an appropriation
Act that he identifies as wasteful spending. If the President
proposes a rescission of budget authority, he may also propose
to reduce the appropriate discretionary spending limits for new
budget authority and outlays flowing therefrom set forth in
section 251(b) of the Balanced Budget and Emergency Deficit
Control Act of 1985 by an amount that does not exceed the
amount of the proposed rescission. Funds made available for
obligation under this procedure may not be proposed for
rescission again under this section.
``(b) Transmittal of Special Message.--
``(1) The President may transmit to Congress a
special message proposing to rescind amounts of budget
authority and include with that special message a draft
bill that, if enacted, would only rescind that budget
authority unless the President also proposes a
reduction in the appropriate discretionary spending
limits set forth in section 251(b) of the Balanced
Budget and Emergency Deficit Control Act of 1985. That
bill shall clearly identify the amount of budget
authority that is proposed to be rescinded for each
program, project, or activity to which that budget
authority relates.
``(2) In the case of an appropriation Act that
includes accounts within the jurisdiction of more than
one subcommittee of the Committee on Appropriations,
the President in proposing to rescind budget authority
under this section shall send a separate special
message and accompanying draft bill for accounts within
the jurisdiction of each subcommittee.
``(3) Each special message shall specify, with
respect to the budget authority proposed to be
rescinded, the following:
``(A) The amount of budget authority which he
proposes to be rescinded.
``(B) Any account, department, or
establishment of the Government to which such
budget authority is available for obligation,
and the specific project or governmental
functions involved.
``(C) The reasons why the budget authority
should be rescinded, including why he considers
it to be wasteful spending.
``(D) To the maximum extent practicable, the
estimated fiscal, economic, and budgetary
effect (including the effect on outlays and
receipts in each fiscal year) of the proposed
rescission.
``(E) All facts, circumstances, and
considerations relating to or bearing upon the
proposed rescission and the decision to effect
the proposed rescission, and to the maximum
extent practicable, the estimated effect of the
proposed rescission upon the objects, purposes,
and programs for which the budget authority is
provided.
``(F) A reduction in the appropriate
discretionary spending limits set forth in
section 251(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985, if
proposed by the President.
``(c) Procedures for Expedited Consideration.--
``(1)(A) Before the close of the second legislative
day of the House of Representatives after the date of
receipt of a special message transmitted to Congress
under subsection (b), the majority leader or minority
leader of the House of Representatives shall introduce
(by request) the draft bill accompanying that special
message. If the bill is not introduced as provided in
the preceding sentence, then, on the third legislative
day of the House of Representatives after the date of
receipt of that special message, any Member of that
House may introduce the bill.
``(B) The bill shall be referred to the Committee on
Appropriations. The committee shall report the bill
without substantive revision and with or without
recommendation. The bill shall be reported not later
than the seventh legislative day of that House after
the date of receipt of that special message. If that
committee fails to report the bill within that period,
that committee shall be automatically discharged from
consideration of the bill, and the bill shall be placed
on the appropriate calendar.
``(C) A vote on final passage of the bill shall be
taken in the House of Representatives on or before the
close of the 10th legislative day of that House after
the date of the introduction of the bill in that House.
If the bill is passed, the Clerk of the House of
Representatives shall cause the bill to be engrossed,
certified, and transmitted to the Senate within one
calendar day of the day on which the bill is passed.
``(2)(A) A motion in the House of Representatives to
proceed to the consideration of a bill under this
section shall be highly privileged and not debatable.
An amendment to the motion shall not be in order, nor
shall it be in order to move to reconsider the vote by
which the motion is agreed to or disagreed to.
``(B) Debate in the House of Representatives on a
bill under this section shall not exceed 4 hours, which
shall be divided equally between those favoring and
those opposing the bill. A motion to further limit
debate shall not be debatable. It shall not be in order
to move to recommit a bill under this section or to
move to reconsider the vote by which the bill is agreed
to or disagreed to.
``(C) Appeals from decisions of the Chair relating to
the application of the Rules of the House of
Representatives to the procedure relating to a bill
under this section shall be decided without debate.
``(D) Except to the extent specifically provided in
the preceding provisions of this subsection,
consideration of a bill under this section shall be
governed by the Rules of the House of Representatives.
It shall not be in order in the House of
Representatives to consider any rescission bill
introduced pursuant to the provisions of this section
under a suspension of the rules or under a special
rule.
``(3) A bill transmitted to the Senate pursuant to
paragraph (1)(D) shall be referred to its Committee on
Appropriations. That committee shall report the bill
without substantive revision and with or without
recommendation. The bill shall be reported not later
than the seventh legislative day of the Senate after it
receives the bill. A committee failing to report the
bill within such period shall be automatically
discharged from consideration of the bill, and the bill
shall be placed upon the appropriate calendar.
``(4)(A) A motion in the Senate to proceed to the
consideration of a bill under this section shall be
privileged and not debatable. An amendment to the
motion shall not be in order, nor shall it be in order
to move to reconsider the vote by which the motion is
agreed to or disagreed to.
``(B) Debate in the Senate on a bill under this
section, and all debatable motions and appeals in
connection therewith (including debate pursuant to
subparagraph (C)), shall not exceed 10 hours. The time
shall be equally divided between, and controlled by,
the majority leader and the minority leader or their
designees.
``(C) Debate in the Senate or any debatable motion or
appeal in connection with a bill under this section
shall be limited to not more than 1 hour, to be equally
divided between, and controlled by, the mover and the
manager of the bill, except that in the event the
manager of the bill is in favor of any such motion or
appeal, the time in opposition thereto, shall be
controlled by the minority leader or his designee. Such
leaders, or either of them, may, from time under their
control of the passage of a bill, allot additional time
to any Senator during the consideration of any
debatable motion or appeal.
``(D) A motion in the Senate to further limit debate
on a bill under this section is not debatable. A motion
to recommit a bill under this section is not in order.
``(d) Amendment and Divisions Prohibited.--No amendment to a
bill considered under this section shall be in order in either
the House of Representatives or the Senate. It shall not be in
order to demand a division of the question in the House of
Representatives (or in a Committee of the Whole) or in the
Senate. No motion to suspend the application of this subsection
shall be in order in either House, nor shall it be in order in
either House to suspend the application of this subsection by
unanimous consent.
``(e) Requirement To Make Available for Obligation.--Any
amount of budget authority proposed to be rescinded in a
special message transmitted to Congress under subsection (b)
shall be made available for obligation on the day after the
date on which either House rejects the bill transmitted with
that special message.
``(f) Definitions.--For purposes of this section:
``(1) The term `appropriation Act' means any general
or special appropriation Act, and any Act or joint
resolution making supplemental, deficiency, or
continuing appropriations.
``(2) The term `legislative day' means, with respect
to either House of Congress, any day of session.
``(3) The term `rescind' means, with respect to an
appropriation Act, to reduce the amount of budget
authority appropriated in that Act, and reducing budget
authority shall include reducing obligation limitations
set forth in that Act.''.
(b) Exercise of Rulemaking Powers.--Section 904 of the
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is
amended--
(1) in subsection (a), by striking ``and 1017'' and
inserting ``1012, and 1017''; and
(2) in subsection (d), by striking ``section 1017''
and inserting ``sections 1012 and 1017''.
(c) Conforming Amendments.--
(1) Section 1011 of the Congressional Budget Act of
1974 (2 U.S.C. 682(5)) is amended by repealing
paragraphs (3) and (5) and by redesignating paragraph
(4) as paragraph (3).
(2) Section 1014 of such Act (2 U.S.C. 685) is
amended--
(A) in subsection (b)(1), by striking ``or
the reservation''; and
(B) in subsection (e)(1), by striking ``or a
reservation'' and by striking ``or each such
reservation''.
(3) Section 1015(a) of such Act (2 U.S.C. 686) is
amended by striking ``is to establish a reserve or'',
by striking ``the establishment of such a reserve or'',
and by striking ``reserve or'' each other place it
appears.
(4) Section 1017 of such Act (2 U.S.C. 687) is
amended--
(A) in subsection (a), by striking
``rescission bill introduced with respect to a
special message or'';
(B) in subsection (b)(1), by striking
``rescission bill or'', by striking ``bill or''
the second place it appears, by striking
``rescission bill with respect to the same
special message or'', and by striking ``, and
the case may be,'';
(C) in subsection (b)(2), by striking ``bill
or'' each place it appears;
(D) in subsection (c), by striking
``rescission'' each place it appears and by
striking ``bill or'' each place it appears;
(E) in subsection (d)(1), by striking
``rescission bill or'' and by striking ``, and
all amendments thereto (in the case of a
rescission bill)'';
(F) in subsection (d)(2)--
(i) by striking the first sentence;
(ii) by amending the second sentence
to read as follows: ``Debate on any
debatable motion or appeal in
connection with an impoundment
resolution shall be limited to 1 hour,
to be equally divided between, and
controlled by, the mover and the
manager of the resolution, except that
in the event that the manager of the
resolution is in favor of any such
motion or appeal, the time in
opposition thereto shall be controlled
by the minority leader or his
designee.'';
(iii) by striking the third sentence;
and
(iv) in the fourth sentence, by
striking ``rescission bill or'' and by
striking ``amendment, debatable
motion,'' and by inserting `debatable
motion';
(G) in paragraph (d)(3), by striking the
second and third sentences; and
(H) by striking paragraphs (4), (5), (6), and
(7) of paragraph (d).
(d) Clerical Amendments.--The table of sections for subpart B
of title X of the Congressional Budget and Impoundment Control
Act of 1974 is amended by redesignating the item relating to
sections 1014 through 1018 as items 1015 through 1019,
respectively, and by inserting after the item relating to
section 1012 the following new item:
``Sec. 1013. Enhanced consideration of certain proposed rescissions.''.
Subtitle C--Commission to Eliminate Waste, Fraud, and Abuse
SEC. 331. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established the Commission to
Eliminate Waste, Fraud, and Abuse (hereafter in this subtitle
referred to as the ``Commission'').
(b) Membership.--
(1) In general.--The Commission shall consist of 12
members, all of whom shall be appointed by the
President not later than 90 days after the date of
enactment of this Act.
(2) Chairperson and vice chairperson.--The President
shall designate a chairperson and vice chairperson from
among the members of the Commission.
(c) Period of Appointment; Vacancies.--Members shall be
appointed for the life of the Commission. Any vacancy in the
Commission shall not affect its powers, but shall be filled in
the same manner as the original appointment.
(d) Meetings.--
(1) Initial meeting.--Not later than 30 days after
the date on which all members of the Commission have
been appointed, the Commission shall hold its first
meeting.
(2) Subsequent meetings.--The Commission shall meet
at the call of the chairperson.
(e) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
SEC. 332. DUTIES OF THE COMMISSION.
(a) Definitions.--In this section, the following definitions
shall apply:
(1) Agency.--The term ``agency'' has the meaning
given the term ``Executive agency'' under section 105
of title 5, United States Code.
(2) Program.--The term ``program'' means any activity
or function of an agency.
(b) In General.--The Commission shall--
(1) evaluate all agencies and programs within those
agencies, using the criteria under subsection (c); and
(2) submit to Congress--
(A) a plan with recommendations of the
agencies and programs that should be realigned
or eliminated; and
(B) proposed legislation to implement the
plan described under subparagraph (A).
(c) Criteria.--
(1) Duplicative.--If 2 or more agencies or programs
are performing the same essential function and the
function can be consolidated or streamlined into a
single agency or program, the Commission shall
recommend that the agency or program be realigned.
(2) Wasteful or inefficient.--The Commission shall
recommend the realignment or elimination of any agency
or program that has wasted Federal funds by--
(A) egregious spending;
(B) mismanagement of resources and personnel;
or
(C) use of such funds for personal benefit or
the benefit of a special interest group.
(3) Outdated, irrelevant, or failed.--The Commission
shall recommend the elimination of any agency or
program that--
(A) has completed its intended purpose;
(B) has become irrelevant; or
(C) has failed to meet its objectives.
(d) Systematic Assessment of Programs.--
(1) In general.--Not later than 1 year after the date
of enactment of this Act, the President shall--
(A) establish a systematic method for
assessing the effectiveness and accountability
of agency programs; and
(B) submit, to the Commission, assessments of
not less than \1/2\ of all programs covered
under subsection (b)(1) that use the method
established under subparagraph (A).
(2) Method objectives.--The method established under
paragraph (1) shall--
(A) recognize different types of federal
programs;
(B) assess programs based primarily on the
achievement of performance goals (as defined
under section 1115(f)(4) of title 31, United
States Code); and
(C) assess programs based in part on the
adequacy of the program's performance measures,
financial management, and other factors
determined by the President.
(3) Development.--The method established under
paragraph (1) shall not be implemented until it has
been reviewed and accepted by the Commission.
(4) Consideration of assessments.--The Commission
shall consider assessments submitted under this
subsection when evaluating programs under subsection
(b)(1).
(e) Common Performance Measures.--Not later than 1 year after
the date of enactment of this Act, the President shall identify
common performance measures for programs covered in subsection
(b)(1) that have similar functions and, to the extent feasible,
provide the Commission with data on such performance measures.
(f) Report.--
(1) In general.--Not later than 2 years after the
date of enactment of this Act, the Commission shall
submit to the President and Congress a report that
includes--
(A) the plan described under subsection
(b)(2)(A), with supporting documentation for
all recommendations; and
(B) the proposed legislation described under
subsection (b)(2)(B).
(2) Relocation of federal employees.--The proposed
legislation under paragraph (1)(B) shall provide that
if the position of an employee of an agency is
eliminated as a result of the implementation of the
plan under paragraph (1)(A), the affected agency shall
make reasonable efforts to relocate such employee to
another position within the agency or within another
Federal agency.
SEC. 333. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission or, at its direction, any
subcommittee or member of the Commission, may, for the purpose
of carrying out this subtitle--
(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and
administer such oaths as any member of the Commission
considers advisable;
(2) require, by subpoena or otherwise, the attendance
and testimony of such witnesses as any member of the
Commission considers advisable; and
(3) require, by subpoena or otherwise, the production
of such books, records, correspondence, memoranda,
papers, documents, tapes, and other evidentiary
materials relating to any matter under investigation by
the Commission.
(b) Subpoenas.--
(1) Issuance.--Subpoenas issued under subsection (a)
shall bear the signature of the chairperson of the
Commission and shall be served by any person or class
of persons designated by the chairperson for that
purpose.
(2) Enforcement.--In the case of contumacy or failure
to obey a subpoena issued under subsection (a), the
United States district court for the judicial district
in which the subpoenaed person resides, is served, or
may be found, may issue an order requiring such person
to appear at any designated place to testify or to
produce documentary or other evidence. Any failure to
obey the order of the court may be punished by the
court as a contempt of that court.
(c) Information From Federal Agencies.--The Commission may
secure directly from any Federal department or agency such
information as the Commission considers necessary to carry out
this Act. Upon request of the chairperson of the Commission,
the head of such department or agency shall furnish such
information to the Commission.
(d) Postal Services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Government.
(e) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property.
SEC. 334. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--
(1) Non-federal members.--Except as provided under
subsection (b), each member of the Commission who is
not an officer or employee of the Government shall not
be compensated.
(2) Federal officers or employees.--All members of
the Commission who are officers or employees of the
United States shall serve without compensation in
addition to that received for their services as
officers or employees of the United States.
(b) Travel Expenses.--The members of the Commission shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the Commission.
(c) Staff.--
(1) In general.--The chairperson of the Commission
may, without regard to the civil service laws and
regulations, appoint and terminate an executive
director and such other additional personnel as may be
necessary to enable the Commission to perform its
duties. The employment of an executive director shall
be subject to confirmation by the Commission.
(2) Compensation.--Upon the approval of the
chairperson, the executive director may fix the
compensation of the executive director and other
personnel without regard to chapter 51 and subchapter
III of chapter 53 of title 5, United States Code,
relating to classification of positions and General
Schedule pay rates, except that the rate of pay for the
executive director and other personnel may not exceed
the maximum rate payable for a position at GS-15 of the
General Schedule under section 5332 of such title.
(3) Personnel as federal employees.--
(A) In general.--The executive director and
any personnel of the Commission who are
employees shall be employees under section 2105
of title 5, United States Code, for purposes of
chapters 63, 81, 83, 84, 85, 87, 89, and 90 of
that title.
(B) Members of commission.--Subparagraph (A)
shall not be construed to apply to members of
the Commission.
(d) Detail of Government Employees.--Any Government employee
may be detailed to the Commission without reimbursement, and
such detail shall be without interruption or loss of civil
service status or privilege.
(e) Procurement of Temporary and Intermittent Services.--The
chairperson of the Commission may procure temporary and
intermittent services under section 3109(b) of title 5, United
States Code, at rates for individuals which do not exceed the
daily equivalent of the annual rate of basic pay prescribed for
level V of the Executive Schedule under section 5316 of such
title.
SEC. 335. TERMINATION OF THE COMMISSION.
The Commission shall terminate 90 days after the date on
which the Commission submits the report under section 232(f).
SEC. 336. CONGRESSIONAL CONSIDERATION OF REFORM PROPOSALS.
(a) Definitions.--In this section:
(1) Implementation bill.--The term ``implementation
bill'' means only a bill which is introduced as
provided under subsection (b), and contains the
proposed legislation included in the report submitted
to Congress under section 232, without modification.
(2) Calendar day.--The term ``calendar day'' means a
calendar day other than 1 on which either House is not
in session because of an adjournment of more than 3
days to a date certain.
(b) Introduction; Referral; and Report or Discharge.--
(1) Introduction.--On the first calendar day on which
both Houses are in session, on or immediately following
the date on which the report is submitted to Congress
under section 232, a single implementation bill shall
be introduced (by request)--
(A) in the Senate by the Majority Leader of
the Senate, for himself and the Minority Leader
of the Senate, or by Members of the Senate
designated by the Majority Leader and Minority
Leader of the Senate; and
(B) in the House of Representatives by the
Speaker of the House of Representatives, for
himself and the Minority Leader of the House of
Representatives, or by Members of the House of
Representatives designated by the Speaker and
Minority Leader of the House of
Representatives.
(2) Referral.--The implementation bills introduced
under paragraph (1) shall be referred to any
appropriate committee of jurisdiction in the Senate and
any appropriate committee of jurisdiction in the House
of Representatives. A committee to which an
implementation bill is referred under this paragraph
may report such bill to the respective House without
amendment.
(3) Report or discharge.--If a committee to which an
implementation bill is referred has not reported such
bill by the end of the 15th calendar day after the date
of the introduction of such bill, such committee shall
be immediately discharged from further consideration of
such bill, and upon being reported or discharged from
the committee, such bill shall be placed on the
appropriate calendar.
(c) Floor Consideration.--
(1) In general.--When the committee to which an
implementation bill is referred has reported, or has
been discharged under subsection (b)(3), it is at any
time thereafter in order (even though a previous motion
to the same effect has been disagreed to) for any
Member of the respective House to move to proceed to
the consideration of the implementation bill, and all
points of order against the implementation bill (and
against consideration of the implementation bill) are
waived. The motion is highly privileged in the House of
Representatives and is privileged in the Senate and is
not debatable. The motion is not subject to amendment,
or to a motion to postpone, or to a motion to proceed
to the consideration of other business. A motion to
reconsider the vote by which the motion is agreed to or
disagreed to shall not be in order. If a motion to
proceed to the consideration of the implementation bill
is agreed to, the implementation bill shall remain the
unfinished business of the respective House until
disposed of.
(2) Amendments.--An implementation bill may not be
amended in the Senate or the House of Representatives.
(3) Debate.--Debate on the implementation bill, and
on all debatable motions and appeals in connection
therewith, shall be limited to not more than 10 hours,
which shall be divided equally between those favoring
and those opposing the resolution. A motion further to
limit debate is in order and not debatable. An
amendment to, or a motion to postpone, or a motion to
proceed to the consideration of other business, or a
motion to recommit the implementation bill is not in
order. A motion to reconsider the vote by which the
implementation bill is agreed to or disagreed to is not
in order.
(4) Vote on final passage.--Immediately following the
conclusion of the debate on an implementation bill, and
a single quorum call at the conclusion of the debate if
requested in accordance with the rules of the
appropriate House, the vote on final passage of the
implementation bill shall occur.
(5) Rulings of the chair on procedure.--Appeals from
the decisions of the Chair relating to the application
of the rules of the Senate or the House of
Representatives, as the case may be, to the procedure
relating to an implementation bill shall be decided
without debate.
(d) Coordination With Action by Other House.--If, before the
passage by 1 House of an implementation bill of that House,
that House receives from the other House an implementation
bill, then the following procedures shall apply:
(1) Nonreferral.--The implementation bill of the
other House shall not be referred to a committee.
(2) Vote on bill of other house.--With respect to an
implementation bill of the House receiving the
implementation bill--
(A) the procedure in that House shall be the
same as if no implementation bill had been
received from the other House; but
(B) the vote on final passage shall be on the
implementation bill of the other House.
(e) Rules of Senate and House of Representatives.--This
section is enacted by Congress--
(1) as an exercise of the rulemaking power of the
Senate and House of Representatives, respectively, and
as such it is deemed a part of the rules of each House,
respectively, but applicable only with respect to the
procedure to be followed in that House in the case of
an implementation bill described in subsection (a), and
it supersedes other rules only to the extent that it is
inconsistent with such rules; and
(2) with full recognition of the constitutional right
of either House to change the rules (so far as relating
to the procedure of that House) at any time, in the
same manner, and to the same extent as in the case of
any other rule of that House.
SEC. 337. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be
necessary for carrying out this subtitle for each of the fiscal
years 2006 through 2008.
TITLE IV--TRUTH IN ACCOUNTING
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees and Uniformed Services Personnel
SEC. 401. CIVIL SERVICE RETIREMENT SYSTEM.
(a) Civil Service Retirement and Disability Fund.--Chapter 83
of title 5, United States Code, is amended--
(1) in section 8331--
(A) in paragraph (17)--
(i) by striking ``normal cost'' and
inserting ``normal cost percentage'';
and
(ii) by inserting ``and standards
(using dynamic assumptions)'' after
``practice'';
(B) by amending paragraph (18) to read as
follows:
``(18) `Fund balance' means the current net assets of
the Fund available for payment of benefits, as
determined by the Office in accordance with appropriate
accounting standards, but does not include any amount
attributable to--
``(A) the Federal Employees' Retirement
System; or
``(B) contributions made under the Federal
Employees' Retirement Contribution Temporary
Adjustment Act of 1983 by or on behalf of any
individual who became subject to the Federal
Employees' Retirement System;''
(C) by amending paragraph (19) to read as
follows:
``(19) `accrued liability' means the estimated excess
of the present value of all benefits payable from the
Fund to employees and Members, and former employees and
Members, subject to this subchapter, and their
survivors, over the present value of deductions to be
withheld from the future basic pay of employees and
Members currently subject to this subchapter and of
future agency contributions to be made in their
behalf;''
(D) in paragraph (27) by striking ``and'' at
the end;
(E) in paragraph (28) by striking the period
at the end and inserting a semicolon; and
(F) by adding at the end the following
paragraphs:
``(29) `dynamic assumptions' means economic
assumptions that are used in determining actuarial
costs and liabilities of a retirement system and in
anticipating the effects of long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation; and
``(30) `unfunded liability' means the estimated
excess of--
``(A) the actuarial present value of all
future benefits payable from the Fund under
this subchapter based on the service of current
or former employees or Members, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the
future basic pay of employees and
Members currently subject to this
chapter pursuant to section 8334;
``(ii) the actuarial present value of
the future contributions to be made
pursuant to section 8334 with respect
to employees and Members currently
subject to this subchapter;
``(iii) the Fund balance, as defined
in paragraph (18), as of the date the
unfunded liability is determined; and
``(iv) any other appropriate amount,
as determined by the Office of
Personnel Management in accordance with
generally accepted actuarial practices
and principles.'';
(2) in section 8334--
(A) in subsection (a)(1)--
(i) by striking the last two
sentences;
(ii) by redesignating that
subsection, as so amended, as
(a)(1)(A); and
(iii) by adding at the end the
following new subparagraphs:
``(B) Except as provided in subparagraph (E), each employing
agency having any employees or Members subject to subparagraph
(A) shall contribute from amounts available for salaries and
expenses an amount equal to the sum of--
``(i) the product of--
``(I) the normal cost percentage, as
determined for employees (other than employees
covered by clause (ii)), multiplied by
``(II) the aggregate amount of basic pay
payable by the agency, for the period involved,
to employees (under subclause (I)) who are
within such agency; and
``(ii) the product of--
``(I) the normal cost percentage, as
determined for Members, Congressional
employees, law enforcement officers,
firefighters, air traffic controllers,
bankruptcy judges, Court of Federal Claims
judges, United States magistrates, judges of
the United States Court of Appeals for the
Armed Forces, members of the Capitol Police,
nuclear materials couriers, and members of the
Supreme Court Police, multiplied by
``(II) the aggregate amount of basic pay
payable by the agency for the period involved,
to employees and Members (under subclause (I))
who are within such agency.
``(C) In determining the normal cost percentage to be applied
under subparagraph (B), amounts provided for under subparagraph
(A) shall be taken into account.
``(D) Contributions under this paragraph shall be paid--
``(i) in the case of law enforcement officers,
firefighters, air traffic controllers, bankruptcy
judges, Court of Federal Claims judges, United States
magistrates, judges of the United States Court of
Appeals for the Armed Forces, members of the Supreme
Court Police, nuclear materials couriers and other
employees, from the appropriations or fund used to pay
such law enforcement officers, firefighters, air
traffic controllers, bankruptcy judges, Court of
Federal Claims judges, United States magistrates,
judges of the United States Court of Appeals for the
Armed Forces, members of the Supreme Court Police,
nuclear materials couriers and other employees,
respectively;
``(ii) in the case of elected officials, from an
appropriation or fund available for payment of other
salaries of the same office or establishment; and
``(iii) in the case of employees of the legislative
branch paid by the Clerk of the House of
Representatives, from the contingent fund of the House.
``(E) In the case of the United States Postal Service, the
Metropolitan Washington Airports Authority, and the government
of the District of Columbia, an amount equal to that withheld
under subparagraph (A) shall be contributed from the
appropriation or fund used to pay the employee.''; and
(B) in subsection (k)--
(i) in paragraph (1)--
(I) in subparagraph (A) by
striking ``the first sentence
of subsection (a)(1) of this
section'' and inserting
``subsection (a)(1)(A)''; and
(II) by amending subparagraph
(B) to read as follows:
``(B) the amount of the contribution under subsection
(a)(1)(B) shall be the amount which would have been
contributed under such subsection if this subsection
had not been enacted.''; and
(ii) in paragraph (2)(C)(iii) by
striking ``the first sentence of
subsection (a)(1)'' and inserting
``subsection (a)(1)(A)''; and
(3) in section 8348--
(A) by repealing subsection (f);
(B) by amending subsection (g) to read as
follows:
``(g)(1)(A) Not later than June 30, 2005, the Office of the
Actuary shall determine the unfunded liability of the Fund, as
of September 30, 2004, attributable to benefits payable under
this chapter and make recommendations regarding its
liquidation. After considering such recommendations, the Office
shall establish an amortization schedule, including a series of
annual installments commencing October 1, 2005, which provides
for the liquidation of such liability by October 1, 2044.
``(B) The Office shall redetermine the unfunded liability of
the Fund as of the close of the fiscal year, for each fiscal
year beginning after September 30, 2004, through the fiscal
year ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(C) The Office shall redetermine the unfunded liability of
the Fund as of the close of the fiscal year for each fiscal
year beginning after September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability over five years.
``(D) Amortization schedules established under this paragraph
shall be set in accordance with generally accepted actuarial
practices and principles, with interest computed at the rate
used in the most recent valuation of the Civil Service
Retirement System.
``(2) At the beginning of each fiscal year, beginning on
October 1, 2005, the Office shall notify the Secretary of the
Treasury of the amount of the first installment under the most
recent amortization schedule established under paragraph (1).
The Secretary shall credit that amount to the Fund, as a
Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated.
``(3) For the purpose of carrying out paragraph (1) with
respect to any fiscal year, the Office may--
``(A) require the Board of Actuaries of the Civil
Service Retirement System to make actuarial
determinations and valuations, make recommendations,
and maintain records in accordance with section
8347(f); and
``(B) use the latest actuarial determinations and
valuations made by such Board of Actuaries.'';
(C) in subsections (h), (i), and (m) by
striking ``unfunded'' and inserting ``accrued''
each place it appears; and
(D) by adding at the end the following new
subsection:
``(n) Under regulations prescribed by the Office, the head of
an agency may request reconsideration of any amount determined
to be payable with respect to such agency under section
8334(a)(1)(B)-(D). Any such request shall be referred to the
Board of Actuaries of the Civil Service Retirement System. The
Board of Actuaries shall review the computations of the Office
and may make any adjustment with respect to any such amount
which the Board determines appropriate. A determination by the
Board of Actuaries under this subsection shall be final.''.
(b) Government Contributions.--Section 8423 of title 5,
United States Code, is amended--
(1) in subsection (a)(2) by striking ``section 8422''
and inserting ``section 8422(a)''; and
(2) in subsection (b)(2) by striking ``equal annual
installments'' and inserting ``annual installments set
in accordance with generally accepted actuarial
practices and principles''.
SEC. 402. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM.
(a) Section 101 of the Central Intelligence Agency Retirement
Act (50 U.S.C. 2001) is amended--
(1) in paragraph (5), to read as follows:
``(5) Unfunded liability.--The term `unfunded
liability' means the estimated excess of--
``(A) the actuarial present value of all
future benefits payable from the Fund under
title II of this Act based on the service of
current or former participants, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the
future basic pay of participants
currently subject to title II of this
Act pursuant to section 211;
``(ii) the actuarial present value of
the future contributions to be made
pursuant to section 211 with respect to
participants currently subject to title
II of this Act;
``(iii) the Fund balance, as defined
in paragraph (4), as of the date the
unfunded liability is determined; and
``(iv) any other appropriate amount,
as determined by the Director in
accordance with generally accepted
actuarial practices and principles.'';
(2) in paragraph (6)--
(A) by striking `` `normal cost' '' and
inserting `` `normal cost percentage' ''; and
(B) by inserting ``and standards (using
dynamic assumptions)'' after ``practice''; and
(3) by adding at the end the following paragraph:
``(10) Dynamic assumptions.--The term `dynamic
assumptions' means economic assumptions that are used
in determining actuarial costs and liabilities of a
retirement system and in anticipating the effects of
long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(b) Section 202 of such Act (50 U.S.C. 2012) is amended by
adding at the end the following: ``The Fund is appropriated for
the payment of benefits as provided by this title.''.
(c) Section 211(a)(2) of such Act (50 U.S.C. 2021(a)(2)) is
amended to read as follows:
``(2) Agency contributions.--The Agency shall
contribute to the Fund the amount computed in a manner
similar to that used under section 8334(a) of title 5,
United States Code, pursuant to determinations of the
normal cost percentage of the Central Intelligence
Agency Retirement and Disability System by the
Director. Contributions under this paragraph shall be
paid from amounts available for salaries and
expenses.''; and
(d) Section 261 of such Act (50 U.S.C. 2091) is amended--
(1) by striking subsections (c), (d), and (e); and
(2) by inserting after subsection (b) the following
new subsections:
``(c)(1) Not later than June 30, 2005, the Director shall
cause to be made actuarial valuations of the Fund that
determine the unfunded liability of the Fund, as of September
30, 2004, attributable to benefits payable under this title and
make recommendations regarding its liquidation. After
considering such recommendations, the Director shall establish
an amortization schedule, including a series of annual
installments commencing October 1, 2005, which provides for the
liquidation of such liability by October 1, 2044.
``(2) The Director shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each fiscal
year beginning after September 30, 2004, through the fiscal
year ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Director shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each fiscal
year beginning after September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability over five years.
``(4) Amortization schedules established under this
subsection shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Civil Service
Retirement and Disability System.
``(d) At the beginning of each fiscal year, beginning on
October 1, 2005, the Director shall notify the Secretary of the
Treasury of the amount of the first installment under the most
recent amortization schedule established under subsection (c).
The Secretary shall credit that amount to the Fund, as a
Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated. For the purposes
of Section 504 of the National Security Act of 1947, this
amount shall be considered authorized.''.
(e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) is
amended by adding at the end the following new section:
``SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EMPLOYEES DESIGNATED
UNDER SECTION 302.
``(a) In addition to other government contributions required
by law, the Agency shall contribute to the Civil Service
Retirement and Disability fund (hereinafter in this section
referred to as the `Fund') amounts calculated in accordance
with section 8423 of title 5, United States Code, based on the
projected number of employees to be designated pursuant to
section 302 of this Act. In addition, the Agency, in a manner
similar to that established for employee contributions to the
Fund by section 8422 of title 5, United States Code, will
contribute an amount equal to the difference between that which
would be contributed by the number of employees projected to be
designated under section 302 and the amounts that are actually
being deducted and contributed from the basic pay of an equal
number of employees pursuant to section 8422. The amounts of
the Agency's contributions under this subsection shall be
determined by the Director of the Office of Personnel
Management, in consultation with the Director, and shall be
paid by the Agency from funds available for salaries and
expenses. Agency employees designated pursuant to section 302
of this Act shall, commencing with such designation, have
deducted from their basic pay the full amount required by
section 8422 of title 5, United States Code, and such
deductions shall be contributed to the Fund.
``(b)(1) The Director of the Office of Personnel Management,
in consultation with the Director, shall determine the total
amount of unpaid contributions (government and employee
contributions) and interest attributable to the number of
individuals employed with the Agency on September 30, 2005, who
are projected to be designated under section 302 of this Act,
but are not yet designated under that section as of that date.
The amount shall be referred to as the section 302 unfunded
liability.
``(2) Not later than June 30, 2006, the Director of the
Office of Personnel Management, in consultation with the
Director, shall establish an amortization schedule, setting
forth a series of annual installments commencing September 30,
2006, which provides for the liquidation of the section 302
unfunded liability by September 30, 2013.
``(3) At the end of each fiscal year, beginning on September
30, 2006, the Director shall notify the Secretary of the
Treasury of the amount of the annual installment under the
amortization schedule established under paragraph (2) of this
subsection. Before closing the accounts for that fiscal year,
the Secretary shall credit that amount to the Fund, out of any
money in the Treasury of the United States not otherwise
appropriated.
``(c) Amounts paid by the Agency pursuant to this section are
deemed to be specifically authorized by the Congress for the
purposes of section 504 of the National Security Act of
1947.''.
(2) The table of contents of such Act is amended by inserting
after the item relating to section 307 the following new item:
``Sec. 308. Full funding of retiree costs for employees designated under
section 302.''.
SEC. 403. FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM.
(a) Chapter 8 of Title I of the Foreign Service Act of 1980,
Public Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as
amended, is further amended in section 804 (22 U.S.C. 4044)--
(1) by amending paragraph (5) to read as follows:
``(5) `normal cost percentage' means the entry-age
normal cost computed in accordance with generally
accepted actuarial practice and standards (using
dynamic assumptions) and expressed as a level
percentage of aggregate basic pay;'';
(2) by amending paragraph (14) to read as follows:
``(14) `unfunded liability' means the estimated
excess of--
``(A) the actuarial present value of all
future benefits payable from the Fund under
this part based on the service of current or
former participants, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the
future basic pay of participants
currently subject to this part pursuant
to section 805;
``(ii) the actuarial present value of
the future contributions to be made
pursuant to section 805 with respect to
participants currently subject to this
part;
``(iii) the Fund balance, as defined
in paragraph (7), as of the date the
unfunded liability is determined,
excluding any amount attributable to
the Foreign Service Pension System, or
contributions made under the Federal
Employees' Retirement Contribution
Temporary Adjustment Act of 1983 by or
on behalf of any individual who became
subject to the Foreign Service Pension
System; and
``(iv) any other appropriate amount,
as determined by the Secretary of the
Treasury in accordance with generally
accepted actuarial practices and
principles.''; and
(3)(A) by striking the period at the end of paragraph
(15) and inserting ``; and''; and
(B) by adding at the end the following new paragraph:
``(16) `dynamic assumptions' means economic
assumptions that are used in determining actuarial
costs and liabilities of a retirement system and in
anticipating the effects of long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(b) in section 852 (22 U.S.C. 4071a)--
(1) in paragraph (4)--
(A) by striking ``normal cost'' and inserting
``normal cost percentage''; and
(B) by striking ``by the Secretary of
State'';
(2) in paragraph (7)--
(A) by striking ``supplemental'' and
inserting ``unfunded'';
(B) in subparagraph (B)(i) by striking
``(I)'' and ``and (II) contributions for past
civilian and military service''; and
(C) in subparagraph (B)(ii) by inserting
before the semicolon ``with respect to
participants currently subject to this part'';
and
(3)(A) at the end of paragraph (8) by striking
``and'';
(B) at the end of paragraph (9) by striking the
period and inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(10) `dynamic assumptions' means economic
assumptions that are used in determining actuarial
costs and liabilities of a retirement system and in
anticipating the effects of long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(c) in section 805(a)(1) (22 U.S.C. 4045(a)(i))--
(1) by striking the second sentence;
(2) (by redesignating that subsection, as so amended,
as (a)(1)(A);
(3) by redesignating the last sentence of that
subsection, as so amended as (a)(1)(C);
(4) by inserting after subparagraph (A) the following
new subparagraph:
``(B) Each employing agency having
participants shall contribute to the Fund the
amount computed in a manner similar to that
used under section 8334(a) of title 5, United
States Code, pursuant to determinations of the
normal cost percentage of the Foreign Service
Retirement and Disability System. Contributions
under this subparagraph shall be paid from the
appropriations or fund used for payment of the
salary of the participant.'';
(5) in subsection (a)(2)(A) by striking ``An equal
amount shall be contributed by the Department'' and
inserting in its place ``Each employing agency having
participants shall contribute to the Fund the amount
computed in a manner similar to that used under section
8334(a) of title 5, United States Code, pursuant to
determinations of the normal cost percentage of the
Foreign Service Retirement and Disability System''; and
(6) in subsection (a)(2)(B) by striking ``An equal
amount shall be contributed by the Department'' and
inserting in its place ``Each employing agency having
participants shall contribute to the Fund from amounts
available for salaries and expenses the amount computed
in a manner similar to that used under section 8334(a)
of title 5, United States Code, pursuant to
determinations of the normal cost percentage of the
Foreign Service Retirement and Disability System'';
(d) by repealing sections 821 and 822 (22 U.S.C. 4061 and
4062) and by adding the following new section:
``Sec. 821. Unfunded Liability.--(a)(1) Not later than June
30, 2005, the Secretary of State shall cause to be made
actuarial valuations of the Fund that determine the unfunded
liability of the Fund, as of September 30, 2004, attributable
to benefits payable under this subchapter and make
recommendations regarding its liquidation. After considering
such recommendations, the Secretary of State shall establish an
amortization schedule, including a series of annual
installments commencing October 1, 2004, which provides for the
liquidation of such liability by October 1, 2044.
``(2) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for
each fiscal year beginning after September 30, 2004, through
the fiscal year ending September 30, 2039, and shall establish
a new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for
each fiscal year beginning after September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of
such liability over five years.
``(4) Amortization schedules established under this
subsection shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Foreign
Service Retirement and Disability System.
``(b) At the beginning of each fiscal year, beginning on
October 1, 2005, the Secretary of State shall notify the
Secretary of the Treasury of the amount of the first
installment under the most recent amortization schedule
established under paragraph (1). The Secretary of the Treasury
shall credit that amount to the Fund, as a Government
contribution, out of any money in the Treasury of the United
States not otherwise appropriated.'';
(e) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by striking
``equal annual installments'' and inserting ``annual
installments set in accordance with generally accepted
actuarial practices and principles'';
(f) in section 859 (22 U.S.C. 4071h) by adding ``percentage''
after ``normal cost'';
(g) in section 802 (22 U.S.C. 4042) by adding at the end the
following: ``The Fund is appropriated for the payment of
benefits as provided by this subchapter.''; and
(h) in section 818 (22 U.S.C. 4058) by striking ``System''
and inserting ``Systems under this subchapter''.
SEC. 404. PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM.
(a) In General.--Title II of the Public Health Service Act
(42 U.S.C. 202 et seq.) is amended by adding at the end the
following new part:
``PART C--PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM
``ESTABLISHMENT AND PURPOSE OF FUND
``Sec. 251. There is established on the books of the Treasury
a fund to be known as the Public Health Service Commissioned
Corps Retirement Fund (hereinafter in this part referred to as
the `Fund'), which shall be administered by the Secretary. The
Fund shall be used for the accumulation of funds in order to
finance on an actuarially sound basis liabilities of the
Department of Health and Human Services for benefits payable on
account of retirement, disability, or death to commissioned
officers of the Public Health Service and to their survivors
pursuant to part A of this title.
``ASSETS OF THE FUND
``Sec. 252. There shall be deposited into the Fund the
following, which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 255.
``(2) Any return on investment of the assets of the
Fund.
``(3) Amounts transferred into the Fund pursuant to
section 404(c) of the Family Budget Protection Act of
2004.
``PAYMENT FROM THE FUND
``Sec. 253. There shall be paid from the Fund benefits
payable on account of retirement, disability, or death to
commissioned officers of the Public Health Service and to their
survivors pursuant to part A of this title.
``DETERMINATION OF CONTRIBUTIONS TO THE FUND
``Sec. 254. (a)(1) Not later than June 30, 2005, the
Secretary shall determine the unfunded liability of the Fund
attributable to service performed as of September 30, 2004,
which is `active service' for the purpose of section 212. The
Secretary shall establish an amortization schedule, including a
series of annual installments commencing October 1, 2005, which
provides for the liquidation of such liability by October 1,
2044.
``(2) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each fiscal
year beginning after September 30, 2004, through the fiscal
year ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each fiscal
year beginning after September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability over 5 years.
``(b) The Secretary shall determine each fiscal year, in
sufficient time for inclusion in the budget request for the
following fiscal year, the total amount of Department of Health
and Human Services contributions to be made to the Fund during
the fiscal year under section 255(a). That amount shall be the
sum of--
``(1) the product of--
``(A) the current estimate of the value of
the single level percentage of basic pay to be
determined under subsection (c)(1) at the time
of the most recent actuarial valuation under
subsection (c); and
``(B) the total amount of basic pay expected
to be paid during that fiscal year to
commissioned officers of the Public Health
Service on active duty (other than active duty
for training); and
``(2) the product of--
``(A) the current estimate of the value of
the single level percentage of basic pay and of
compensation (paid pursuant to section 206 of
title 37, United States Code) to be determined
under subsection (c)(2) at the time of the most
recent actuarial valuation under subsection
(c); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of
title 37, United States Code) expected to be
paid during the fiscal year to commissioned
officers of the Reserve Corps of the Public
Health Service (other than officers on full-
time duty other than for training) who are not
otherwise described in subparagraph (A).
``(c) Not less often than every four years thereafter (or by
the fiscal year end prior to the effective date of any
statutory change affecting benefits payable on account of
retirement, disability, or death to commissioned officers or
their survivors), the Secretary shall carry out an actuarial
valuation of benefits payable on account of retirement,
disability, or death to commissioned officers of the Public
Health Service and to their survivors pursuant to part A of
this title. Each such actuarial valuation shall be signed by an
enrolled Actuary and shall include--
``(1) a determination (using the aggregate entry-age
normal cost method) of a single level percentage of
basic pay for commissioned officers of the Public
Health Service on active duty (other than active duty
for training); and
``(2) a determination (using the aggregate entry-age
normal cost method) of a single level percentage of
basic pay and of compensation (paid pursuant to section
206 of title 37, United States Code) of commissioned
officers of the Reserve Corps of the Public Health
Service (other than officers on full time duty other
than for training) who are not otherwise described in
paragraph (1).
``(d) All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(e) The Secretary shall provide for the keeping of such
records as are necessary for determining the actuarial status
of the Fund.
``PAYMENTS INTO THE FUND
``Sec. 255. (a) From amounts available to the Department of
Health and Human Services for salaries and expenses, the
Secretary shall pay into the Fund at the end of each month the
amount that is the sum of--
``(1) the product of--
``(A) the level percentage of basic pay
determined using all the methods and
assumptions approved for the most recent (as of
the first day of the current fiscal year)
actuarial valuation under sections 254(c)(1)
(except that any statutory change affecting
benefits payable on account of retirement,
disability, or death to commissioned officers
or their survivors that is effective after the
date of that valuation and on or before the
first day of the current fiscal year shall be
used in such determination); and
``(B) the total amount of basic pay accrued
for that month by commissioned officers of the
Public Health Service on active duty (other
than active duty for training); and
``(2) the product of--
``(A) the level percentage of basic pay and
of compensation (paid pursuant to section 206
of title 37, United States Code) determined
using all the methods and assumptions approved
for the most recent (as of the first day of the
current fiscal year) actuarial valuation under
section 254(c)(2) (except that any statutory
change affecting benefits payable on account of
retirement, disability, or death to
commissioned officers or their survivors that
is effective after the date of that valuation
and on or before the first day of the current
fiscal year shall be used in such
determinations); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of
title 37, United States Code) accrued for that
month by commissioned officers of the Reserve
Corps of the Public Health Service (other than
officers on full-time duty other than for
training).
``(b) At the beginning of each fiscal year, beginning on
October 1, 2005, the Secretary shall certify to the Secretary
of the Treasury the amount of the first installment under the
most recent amortization schedule established under section
254(a). The Secretary of the Treasury shall pay into the Fund
from the General Fund of the Treasury the amount so certified.
Such payment shall be the contribution to the Fund for that
fiscal year.
``INVESTMENTS OF ASSETS OF FUND
``Sec. 256. The Secretary may request the Secretary of the
Treasury to invest such portion of the Fund as is not, in the
judgment of the Secretary, required to meet the current needs
of the Fund. Such investments shall be made by the Secretary of
the Treasury in public debt securities with maturities suitable
to the needs of the Fund, as determined by the Secretary, and
bearing interest at rates determined by the Secretary of the
Treasury, taking into consideration current market yields on
outstanding marketable obligations of the United States of
comparable maturities. The income on such investments shall be
credited to and form a part of the Fund.
``IMPLEMENTATION YEAR EXCEPTIONS
``Sec. 257. (a) To avoid funding shortfalls in the first year
should formal actuarial determinations not be available in time
for budget preparation, the amounts used in the first year in
sections 255(a)(1)(A) and 255(a)(2)(A) shall be set equal to
those estimates in sections 254(b)(1)(A) and 254(b)(2)(A) if
final determinations are not available. The original unfunded
liability as defined in section 254(a) shall include an
adjustment to correct for this difference between the formal
actuarial determinations and the estimates in sections
254(b)(1)(A) and 254(b)(2)(A).''.
(b) Conforming Amendments.--
(1) Condition of detail.--Section 214 of the Public
Health Service Act (42 U.S.C. 215) is amended by adding
at the end the following new subsection:
``(e) The Secretary shall condition any detail under
subsection (a), (b), or (c) upon the agreement of the executive
department, State, subdivision, Committee of the Congress, or
institution concerned to pay to the Department of Health and
Human Services, in advance or by way of reimbursement, for the
full cost of the detail including that portion of the
contributions under section 255(a) that is attributable to the
detailed personnel.''.
(2) Sequestration rule.--Section 256(f) of the
Balanced Budget and Emergency Deficit Control Act of
1985 (2 U.S.C. 906(f)) is amended--
(A) by inserting after the item relating to
``payment to the foreign service retirement and
disability fund'' the following item: ``Payment
to the Public Health Service Commissioned Corps
Retirement Fund (75-0380-0-1-551);''; and
(B) by inserting after the item relating to
the ``Pensions for former Presidents'' the
following item: ``Public Health Service
Commissioned Corps Retirement Fund (75-8274-0-
7-602);''.
(c) Transfer of Appropriations.--There shall be transferred
on October 1, 2006, into the fund established under section 251
of the Public Health Service Act, as added by subsection (a),
any obligated or unobligated balances of appropriations made to
the Department of Health and Human Services that are currently
available for benefits payable on account of retirement,
disability, or death to commissioned officers of the Public
Health Service and to their survivors pursuant to part A of
title II of the Public Health Service Act, and amounts so
transferred shall be part of the assets of the Fund.
SEC. 405. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION COMMISSIONED
OFFICER CORPS RETIREMENT SYSTEM.
(a) In General.--The National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (title II
of Public Law 107-372) is amended by inserting after section
246 (33 U.S.C. 3046) the following new section:
``Sec. 246A. (a) Establishment and Purpose of NOAA
Commissioned Officer Corps Retirement Fund.--(1) There is
established on the books of the Treasury a fund to be known as
the National Oceanic and Atmospheric Administration
Commissioned Officer Corps Retirement Fund (hereinafter in this
section referred to as the `Fund'), which shall be administered
by the Secretary. The Fund shall be used for the accumulation
of funds in order to finance on an actuarially sound basis
liabilities of the Department of Commerce under military
retirement and survivor benefit programs for the commissioned
officers corps.
``(2) The term `military retirement and survivor benefit
program' means--
``(A) the provisions of this title and title 10,
United States Code, creating entitlement to, or
determining, the amount of retired pay;
``(B) the programs under the jurisdiction of the
Department of Defense providing annuities for survivors
and members and former members of the Armed Forces,
including chapter 73 of title 10, section 4 of Public
Law 92-425, and section 5 of Public Law 96-202, as made
applicable to the commissioned officer corps by section
261.
``(b) Assets of the Fund.--There shall be deposited into the
Fund the following, which shall constitute the assets of the
Fund:
``(1) Amounts paid into the Fund under subsection
(e).
``(2) Any return on investment of the assets of the
Fund.
``(3) Amounts transferred into the Fund pursuant to
section 405(c) of the Family Budget Protection Act of
2004.
``(c) Payments From the Fund.--There shall be paid from the
Fund benefits payable on account of military retirement and
survivor benefit programs to commissioned officers of the
commissioned officer corps and their survivors.
``(d) Determination of Contributions to the Fund.--(1)(A) Not
later than June 30, 2004, the Secretary shall determine the
unfunded liability of the Fund attributable to service
performed as of September 30, 2004, which is `active service'
for the purpose of this title. The Secretary shall establish an
amortization schedule, including a series of annual
installments commencing October 1, 2005, which provides for the
liquidation of such liability by October 1, 2044.
``(B) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each fiscal
year beginning after September 30, 2004, through the fiscal
year ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on September 30 of the subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(C) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each fiscal
year beginning after September 30, 2039, and shall establish a
new authorization schedule, including series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability over 5 years.
``(2) The Secretary shall determine each fiscal year, in
sufficient time for inclusion in the budget request for the
following fiscal year, the total amount of Department of
Commerce contributions to be made to the Fund during that
fiscal year under (e). The amount shall be the product of--
``(A) the current estimate of the value of the single
level percentage of basic pay to be determined under
subsection (e) at the time of the most recent actuarial
valuation under paragraph (3); and
``(B) the total amount of basic pay expected to be
paid during that fiscal year to commissioned officers
of NOAA on active duty.
``(3) Not less often then every four years (or by the fiscal
year end before the effective date of any statutory change
affecting benefits payable on account of retirement,
disability, or death to commissioned officers or their
survivors), the Secretary shall carry out an actuarial
valuation of benefits payable on account of military retirement
and survivor benefit programs to commissioned officers of the
Administration and to their survivors. Each such actuarial
valuation shall be signed by an enrolled Actuary and shall
include a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay for
commissioned officers on active duty.
``(4) All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices, and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(5) The Secretary shall provide for the keeping of such
records as are necessary for determining the actuarial status
of the Fund.
``(e) Payments Into the Fund.--(1) From amounts appropriated
to the National Oceanic Atmospheric Administration for salaries
and expenses, the Secretary shall pay into the Fund at the end
of each month the amount that is the product of--
``(A) the level percentage of basic pay determined
using all the methods and assumptions approved for the
most recent (as of the first day of the current fiscal
year) actuarial valuation under subsection (d) (except
that any statutory change affecting benefits payable on
account of military retirement and survivor benefit
programs to commissioned officers of the Administration
and to their survivors that is effective date after the
date of that valuation and on or before the first day
of the current fiscal year shall be used in such
determination); and
``(B) the total amount of basic pay accrued for that
month by commissioned officers on active duty.
``(2)(A) At the beginning of each fiscal year, the Secretary
shall determine the sum of--
``(i) the amount of the payment for that year under
the amortization of the original unfunded liability of
the Fund;
``(ii) the amount (including any negative amount) for
that year under the most recent amortization schedule
determined by the Secretary for the amortization of any
cumulative actuarial gain or loss to the Fund,
resulting from changes in benefits; and
``(iii) the amount (including any negative amount)
for that year under the most recent amortization
schedule determined by the Secretary for the
amortization or any cumulative actuarial gain or loss
to the Fund resulting from changes in actuarial
assumptions and from experience different from the
assumed since the last valuation.
The Secretary shall promptly certify the amount of the sum to
the Secretary of the Treasury.
``(B) Upon receiving the certification pursuant to paragraph
(1), the Secretary of the Treasury shall promptly pay into the
Fund from the General Fund of the Treasury the amount so
certified. Such payment shall be the contribution to the Fund
for that fiscal year.
``(f) Investment of Assets of the Fund.--The Secretary may
request the Secretary of the Treasury to invest such portion of
the Fund as is not, in the judgment of the Secretary, required
to meet the current needs of the Fund. Such investments shall
be made by the Secretary of the Treasury in public debt
securities with maturities suitable to the needs of the Fund,
as determined by the Secretary, and bearing interest at rates
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding marketable
obligations of the United States of comparable maturities. The
income of such investments shall be credited to and form a part
of the Fund.
``(g) Implementation Year Exceptions.--(1) To avoid funding
shortfalls in the first year should formal actuarial
determinations not be available in time for budget preparation,
the amounts used in the first year in subsection (e)(1)(A)
shall be set equal to the estimate in subsection (d)(2)(A) if
final determinations are not available. The original unfunded
liability as determined in subsection (d)(1) shall include an
adjustment to correct for this difference between the formal
actuarial determinations and the estimates in subsection
(d)(2)(A).''.
(b) Sequestration Rule.--Section 256(f) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
906(f)) is amended by striking ``National Oceanic and
Atmospheric Administration retirement (13-1450-0-1-306);'' and
inserting ``National Oceanic and Atmospheric Administration
Commissioned Officer Corps Retirement Fund;''.
(c) Transfer of Appropriations.--There shall be transferred
on October 1, 2006, into the fund established under section
246A(a) of the National Oceanic and Atmospheric Administration
Commissioned Officer Corps Act of 2002 (title II of Public Law
107-372, as added by subsection (a)), any obligated and
unobligated balance of appropriations made to the Department of
Commerce that are available as of the date of the enactment of
this Act for benefits payable on account of military retirement
and survivor benefit programs to commissioned officers of the
NOAA Commissioned Officer Corps and to their survivors, and
amounts so transferred shall be part of the assets of the Fund,
effective October 1, 2006.
(d) Effective Date.--Subsection (c) (relating to payments
from the Fund) and (e) (relating to payments into the Fund) of
section 246A of the National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (title II
of Public Law 107-372, as added by subsection (a)), shall take
effect on October 1, 2006.
SEC. 406. COAST GUARD MILITARY RETIREMENT SYSTEM.
(a) Accrual Funding for Coast Guard Retirement.--
(1) In general.--Chapter 11 of title 14, United
States Code, is amended by adding at the end the
following new subchapter:
``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND
``Sec. 441. Establishment and purpose of Fund; definitions
``(a) Establishment of Fund; Purpose.--There is established
on the books of the Treasury a fund to be known as the Coast
Guard Military Retirement Fund (hereinafter in this subchapter
referred to as the `Fund'), which shall be administered by the
Secretary. The Fund shall be used for the accumulations of
funds in order to finance on an actuarially sound basis
liabilities of the Coast Guard under military retirement and
survivor benefit programs.
``(b) Military Retirement and Survivor Benefit Programs
Defined.--In this subchapter, the term `military retirement and
survivor benefit programs' means--
``(1) the provisions of this title and title 10
creating entitlement to, or determining the amount of,
retired pay;
``(2) the programs providing annuities for survivors
of members and former members of the armed forces,
including chapter 73 of title 10, section 4 of Public
Law 92-425, and section 5 of Public Law 96-402; and
``(3) the authority provided in section 1048(h) of
title 10.
``(c) Secretary Defined.--In this subchapter, the term
`Secretary' means the Secretary of Homeland Security when the
Coast Guard is not operating as a service in the Navy and the
Secretary of Defense when the Coast Guard is operating as a
service in the Navy.
``Sec. 442. Assets of the Fund
``There shall be deposited into the Fund the following, which
shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 445 of
this title.
``(2) Any return on investment of the assets of the
Fund.
``(3) Amounts transferred into the Fund pursuant to
section 406(d) of the Family Budget Protection Act of
2004.
``Sec. 443. Payments from the Fund
``(a) In General.--There shall be paid from the Fund the
following:
``(1) Retired pay payable to persons on the retired
list of the Coast Guard.
``(2) Retired pay payable under chapter 1223 of title
10 to former members of the Coast Guard and the former
United States Lighthouse Service.
``(3) Benefits payable under programs that provide
annuities for survivors of members and former members
of the armed forces, including chapter 73 of title 10,
section 4 of Public Law 92-425, and section 5 of Public
Law 96-402.
``(4) Amounts payable under section 1048(h) of title
10.
``(b) Availability of Assets of the Fund.--The assets of the
Fund are hereby made available for payments under subsection
(a).
``Sec. 444. Determination of contributions to the Fund
``(a) Initial Unfunded Liability.--(1) Not later than June
30, 2005, the Secretary shall determine the unfunded liability
of the Fund attributable to service performed as of September
30, 2004, which is `active service' for the purposes of section
212. The Secretary shall establish an amortization schedule,
including a series of annual installments commencing October 1,
2005, which provides for the liquidation of such liability by
October 1, 2044.
``(2) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each
beginning after September 30, 2004, through the fiscal year
ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each fiscal
year beginning after September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability over five years.
``(b) Annual Contributions for Current Services.--(1) The
Secretary shall determine each fiscal year, in sufficient time
for inclusion in the budget request for the following fiscal
year, the total amount of Department of Homeland Security, or
Department of Defense, contributions to be made to the Fund
during that fiscal year under section 445(a) of this title.
That amount shall be the sum of the following:
``(A) The product of--
``(i) the current estimate of the value of
the single level percentage of basic pay to be
determined under subsection (c)(1)(A) at the
time of the most recent actuarial valuation
under subsection (c); and
``(ii) the total amount of basic pay expected
to be paid during that fiscal year to members
of the Coast Guard on active duty (other than
active duty for training).
``(B) The product of--
``(i) the current estimate of the value of
the single level percentage of basic pay and of
compensation (paid pursuant to section 206 of
title 37) to be determined under subsection
(c)(1)(B) at the time of the most recent
actuarial valuation under subsection (c); and
``(ii) the total amount of basic pay and
compensation (paid pursuant to section 206 of
title 37) expected to be paid during that
fiscal year to members of the Coast Guard Ready
Reserve (other than members on full-time
Reserve duty other than for training) who are
not otherwise described in subparagraph
(A)(ii).
``(2) The amount determined under paragraph (1) for any
fiscal year is the amount needed to be appropriated to the
Department of Homeland Security for that fiscal year for
payments to be made to the Fund during that year under section
445(a) of this title. The President shall include not less than
the full amount so determined in the budget transmitted to
Congress for that fiscal year under section 1105 of title 31.
The President may comment and make recommendations concerning
any such amount.
``(c) Periodic Actuarial Valuations.--(1) Not less often than
every four years (or before the effective date of any statutory
change affecting benefits payable on account of retirement,
disability, or death to members of the Coast Guard or their
survivors), the Secretary shall carry out an actuarial
valuation of the Coast Guard military retirement and survivor
benefit programs. Each actuarial valuation of such programs
shall be signed by an enrolled actuary and shall include--
``(A) a determination (using the aggregate entry-age
normal cost method) of a single level percentage of
basic pay for members of the Coast Guard on active duty
(other than active duty for training); and
``(B) a determination (using the aggregate entry-age
normal cost method) of single level percentage of basic
pay and of compensation (paid pursuant to section 206
of title 37) for members of the Ready Reserve of the
Coast Guard (other than members on full-time Reserve
duty other than for training) who are not otherwise
described in subparagraph (A).
``(2) Such single level percentages shall be used for the
purposes of subsection (b) and section 445(a) of this title.
``(d) Use of Generally Accepted Actuarial Principles and
Practices.--All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(e) Records.--The Secretary shall provide for the keeping
of such records as are necessary for determining the actuarial
status of the Fund.
``Sec. 445. Payments into the Fund
``(a) Monthly Accrual Charge for Current Services.--From
amounts appropriated to the Coast Guard for salaries and
expenses, the Secretary shall pay into the Fund at the end of
each month as the Department of Homeland Security, or
Department of Defense, contribution to the Fund for that month
the amount that is the sum of the following:
``(1) The product of--
``(A) the level percentage of basic pay
determined using all the methods and
assumptions approved for the most recent (as of
the first day of the current fiscal year)
actuarial valuation under section 444(c)(1)(A)
of this title (except that any statutory change
in the military retirement and survivor benefit
systems that is effective after the date of
that valuation and on or before the first day
of the current fiscal year shall be used in
such determination); and
``(B) the total amount of basic pay accrued
for that month by members of the Coast Guard on
active duty (other than active duty for
training).
``(2) The product of--
``(A) the level percentage of basic pay and
compensation (accrued pursuant to section 206
of title 37) determined using all the methods
and assumptions approved for the most recent
(as of the first day of the current fiscal
year) actuarial valuation under section
444(c)(1)(B) of this title (except that any
statutory change in the military retirement and
survivor benefit systems that is effective
after the date of that valuation and on or
before the first day of the current fiscal year
shall be used in such determination); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of
title 37) accrued for that month by members of
the Ready Reserve (other than members of full-
time Reserve duty other than for training) who
are not otherwise described in paragraph
(1)(B).
``(b) Annual Payment for Unfunded Liabilities.--(1) At the
beginning of each fiscal year, beginning on October 1, 2005,
the Secretary shall certify to the Secretary of the Treasury
the amount of the first installment under the most recent
amortization schedule established under section 254(a). The
Secretary of the Treasury shall promptly pay into the Fund from
the General Fund of the Treasury the amount so certified. Such
payment shall be the contribution to the Fund for that fiscal
year.
``Sec. 446. Investment of assets of the Fund
``The Secretary may request the Secretary of the Treasury to
invest such portion of the Fund as is not, in the judgment of
the Secretary, required to meet the current needs of the Fund.
Such investments shall be made by the Secretary of the Treasury
in public debt securities with maturities suitable to the needs
of the Fund, as determined by the Secretary, and bearing
interest at rates determined by the Secretary of the Treasury,
taking into consideration current market yields on outstanding
marketable obligations of the United States of comparable
maturities. The income on such investments shall be credited to
and form a part of the Fund.''.
(2) Technical amendments.--Such chapter is further
amended--
(A) by amending the center heading after the
table of sections to read as follows:
``SUBCHAPTER I--OFFICERS'';
(B) by amending the center heading after
section 336 to read as follows:
``SUBCHAPTER II--ENLISTED MEMBERS'';
(C) by amending the center heading after
section 373 to read as follows:
``SUBCHAPTER III--GENERAL PROVISIONS'';
and
(D) by amending the center heading after
section 425 to read as follows:
``SUBCHAPTER IV--SPECIAL PROVISIONS''.
(3) Clerical amendments.--The table of sections at
the beginning of such chapter is amended--
(A) by striking ``officers'' at the beginning
of the table and inserting ``subchapter i--
officers'';
(B) by striking ``enlisted members'' after
the item relating to section 336 and inserting
``subchapter ii--enlisted members'';
(C) by striking ``general provisions'' after
the item relating to section 373 and inserting
``subchapter iii--general provisions'';
(D) by striking ``special provisions'' after
the item relating to section 425 and inserting
``subchapter iv--special provisions''; and
(E) by adding at the end the following:
``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND
``441. Establishment and purpose of Fund; definitions.
``442. Assets of the Fund.
``443. Payments from the Fund.
``444. Determination of contributions to the Fund.
``445. Payments into the Fund.
``446. Investment of assets of the Fund.''.
(b) Implementation Year Exceptions.--To avoid funding
shortfalls in the first year of implementation of subchapter V
of chapter 11 of title 14, United States Code, as added by
subsection (a), if formal actuarial determinations are not
available in time for budget preparation, the amounts used in
the first year under sections 445(a)(1)(A) and 445(a)(2)(A) of
such title shall be set equal to those estimates in sections
444(b)(1)(A)(i) and 444(b)(1)(B)(i), respectively, of such
title if final determinations are not available. The original
unfunded liability, as defined in section 444(a) of such title,
shall include an adjustment to correct for this difference
between the formal actuarial determinations and the estimates
in sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i) of such title.
(c) Conforming Amendment.--Section 256(f) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
906(f)) is amended by striking ``Retired Pay, Coast Guard (69-
0241-0-1-403)'' and inserting ``Coast Guard Military Retirement
Fund (69-0241-01-403)''.
(d) Transfer of Existing Balances.--
(1) Transfer.--There shall be transferred into the
Fund on October 1, 2005, any obligated and unobligated
balances of appropriations made to the Department of
Homeland Security that are currently available for
retired pay, and amounts so transferred shall be part
of the assets of the Fund.
(2) Fund defined.--For purposes of paragraph (1), the
term ``Fund'' means the Coast Guard Military Retirement
Fund established under section 441 of title 14, United
States Code, as added by subsection (a).
(e) Effective Date.--Sections 443 (relating to payments from
the Fund) and 445 (relating to payments into the Fund) of title
14, United States Code, as added by subsection (a), shall take
effect on October 1, 2005.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs
for Federal Employees
SEC. 411. FEDERAL EMPLOYEES HEALTH BENEFITS FUND.
(a) Section 8906 of title 5, United States Code, is amended--
(1) by redesignating subsection (c) as subsection
(c)(1) and by adding at the end the following new
paragraphs:
``(2) In addition to Government contributions required by
subsection (b) and paragraph (1), each employing agency shall
contribute amounts as determined by the Office to be necessary
to prefund the accruing actuarial cost of post-retirement
health benefits for each of the agency's current employees who
are eligible for Government contributions under this section.
Amounts under this paragraph shall be paid by the employing
agency separate from other contributions under this section,
from the appropriations or fund used for payment of the salary
of the employee, on a schedule to be determined by the Office.
``(3) Paragraph (2) shall not apply to the United States
Postal Service or the government of the District of
Columbia.''; and
(2) by amending subsection (g)(1) to read as follows:
``(g)(1) Except as provided in paragraphs (2) and (3), all
Government contributions authorized by this section for health
benefits for an annuitant shall be paid from the Employees
Health Benefits Fund to the extent that funds are available in
accordance with section 8909(h)(6) and, if necessary, from
annual appropriations which are authorized to be made for that
purpose and which may be made available until expended.''.
(b) Section 8909 of title 5, United States Code, is amended
by adding at the end the following new subsection:
``(h)(1) Not later than June 30, 2006, the Office shall
determine the existing liability of the Fund for post-
retirement health benefits, excluding the liability of the
United States Postal Service for service under section
8906(g)(2), under this chapter as of September 30, 2006. The
Office shall establish an amortization schedule, including a
series of annual installments commencing September 30, 2006,
which provides for the liquidation of such liability by
September 30, 2043.
``(2) At the close of each fiscal year, for fiscal years
beginning after September 30, 2005, the Office shall determine
the supplemental liability of the Fund for post-retirement
health benefits, excluding the liability attributable to the
United States Postal Service for service subject to section
8906(g)(2), and shall establish an amortization schedule,
including a series of annual installments commencing on
September 30 of the subsequent fiscal year, which provides for
liquidation of such supplemental liability over 30 years.
``(3) Amortization schedules established under this paragraph
shall be set in accordance with generally accepted actuarial
practices and principles.
``(4) At the end of each fiscal year on and after September
30, 2006, the Office shall notify the Secretary of the Treasury
of the amounts of the next installments under the most recent
amortization schedules established under paragraphs (1) and
(2). Before closing the accounts for the fiscal year, the
Secretary shall credit the sum of these amounts (including in
that sum any negative amount for the amortization of the
supplemental liability) to the Fund, as a Government
contribution, out of any money in the Treasury of the United
States not otherwise appropriated.
``(5) For the purpose of carrying out paragraphs (1) and (2),
the Office shall perform or arrange for actuarial
determinations and valuations and shall prescribe retention of
such records as it considers necessary for making periodic
actuarial valuations of the Fund.
``(6) Notwithstanding subsection (b), the amounts deposited
into the Fund pursuant to this subsection and section
8906(c)(2) to prefund post-retirement health benefits costs
shall be segregated within the Fund so that such amounts, as
well as earnings and proceeds under subsection (c) attributable
to them, may be used exclusively for the purpose of paying
Government contributions for post-retirement health benefits
costs. When such amounts are used in combination with amounts
withheld from annuitants to pay for health benefits, a portion
of the contributions shall then be set aside in the Fund as
described in subsection (b).
``(7) Under this subsection, `supplemental liability' means--
``(A) the actuarial present value for future post-
retirement health benefits that are the liability of
the Fund, less
``(B) the sum of--
``(i) the actuarial present value of all
future contributions by agencies and annuitants
to the Fund toward those benefits pursuant to
section 8906;
``(ii) the present value of all scheduled
amortization payments to the Fund pursuant to
paragraphs (1) and (2);
``(iii) the Fund balance as of the date the
supplemental liability is determined, to the
extent that such balance is attributable to
post-retirement benefits; and
``(iv) any other appropriate amount, as
determined by the Office in accordance with
generally accepted actuarial practices and
principles.''.
SEC. 412. FUNDING UNIFORMED SERVICES HEALTH BENEFITS FOR ALL RETIREES.
Title 10, United States Code, is amended--
(1) in the title of chapter 56, by striking
``DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE'' and
inserting ``UNIFORMED SERVICES'';
(2) in section 1111--
(A) in subsection (a)--
(i) by striking ``Department of
Defense Medicare-Eligible'' and
inserting ``Uniformed Services'';
(ii) by striking ``Department of
Defense under''; and
(iii) by striking ``for medicare-
eligible beneficiaries'';
(B) in subsection (c)--
(i) by striking ``The Secretary of
Defense may'' and inserting ``The
Secretary of Defense shall'';
(ii) by striking ``with any other''
and inserting ``with each'';
(iii) by striking ``Any such
agreement'' and inserting ``Such
agreements''; and
(iv) by striking ``administering
Secretary may'' and inserting
``administrative Secretary shall'';
(3) in section 1113--
(A) in subsection (a)--
(i) by striking ``and are medicare
eligible'';
(ii) by striking ``who are medicare
eligible''; and
(iii) by adding at the end the
following new sentence: ``For the
fiscal year starting October 1, 2004,
only, the payments will be solely for
the costs of members or former members
of a uniformed service who are entitled
to retired or retainer pay and are
medicare-eligible, and eligible
dependents or survivors who are
medicare-eligible.'';
(B) in subsection (c)(1), by striking ``who
are medicare-eligible'';
(C) in subsection (d), by striking ``who are
medicare-eligible''; and
(D) in subsection (f), by striking ``If'' and
inserting ``When'';
(4) in section 1114, in subsection (a)(1), by
striking ``Department of Defense Medicare-Eligible''
and inserting ``Uniformed Services'';
(5) in section 1115--
(A) in subsection (b)(2), by striking ``The
amount determined under paragraph (1) for any
fiscal year is the amount needed to be
appropriated to the Department of Defense (or
to the other executive department having
jurisdiction over the participating uniformed
service)'' and inserting ``The amount
determined under paragraph (1), or the amount
determined under section 1111(c) for a
participating uniformed service, for any fiscal
year, is the amount needed to be appropriated
to the Department of Defense (or to any other
executive department having jurisdiction over a
participating uniformed service)'';
(B) in subsection (c)(2), by striking ``for
medicare eligible beneficiaries''; and
(C) by adding at the end the following new
subsection:
``(f) For the fiscal year starting October 1, 2004, only, the
amounts in this section shall be based solely on the costs of
medicare-eligible benefits of beneficiaries and the costs for
their eligible dependents or survivors who are medicare-
eligible, and shall be recalculated thereafter to reflect the
cost of beneficiaries defined in section 1111.''; and
(6) in section 1116--
(A) in subsection (a)(1)(A), by striking
``for medicare-eligible beneficiaries'';
(B) in subsection (a)(2)(A), by striking
``for medicare-eligible beneficiaries''; and
(C) in subsection (c), by striking
``subsection (a) shall be paid from funds
available for the health care programs'' and
inserting ``subsection (a) and section 1111(c)
shall be paid from funds available for the pay
of members of the participating uniformed
services under the jurisdiction of the
respective administering secretaries''.
SEC. 413. EFFECTIVE DATE.
Except as otherwise provided, this title shall take effect
upon enactment with respect to fiscal years beginning after
2005.
Subtitle C--Limit on the Public Debt
SEC. 421. FINDINGS.
The Congress finds the following:
(1) Since 1997, Congress has paid down and retired
approximately $450,000,000,000 of the Government's debt
which was previously held by the public.
(2) This reduction in the Government's debt to the
public should permit a lowering of the statutory debt
ceiling. However, the statutory definition mingles both
the public debt and intragovernment liabilities, the
latter of which do not represent resource withdrawals
for the economy.
(3) Intragovernment accounts such as the social
security trust funds, the Civil Service Retirement and
Disability Fund, the Department of Defense Military
Retirement Fund, and the Unemployment Trust Fund
constitute accrued liabilities of the Government which
will be paid from future receipts, taxes, or borrowing.
If the Government issues debt to the public to fund
such liabilities in the future, that debt will properly
be subject to the debt ceiling.
(4) Properly defining the debt of the Government
would permit lowering the debt ceiling to take account
of, and lock in, the fiscal progress that has been
made.
SEC. 422. PURPOSE.
It is the purpose of this subtitle to properly define the
public debt to exclude intragovernment obligations.
SEC. 423. LIMIT ON PUBLIC DEBT.
Section 3101 of title 31, United States Code, is amended to
read as follows:
``Sec. 3101. Public debt limit
``(a) In this section, the current redemption value of an
obligation issued on a discount basis and redeemable before
maturity at the option of its holder is deemed to be the face
amount of the obligation.
``(b) The face amount of obligations issued under this
chapter and the face amount of obligations whose principal and
interest are guaranteed by the United States Government (except
guaranteed obligations held by the Secretary of the Treasury
and intragovernmental holdings) may not be more than
$4,393,000,000,000 outstanding at one time, subject to changes
periodically made in that amount as provided by law.
``(c) For purposes of this section, the face amount, for any
month, of any obligation issued on a discount basis that is not
redeemable before maturity at the option of the holder of the
obligation is an amount equal to the sum of--
``(1) the original issue price of the obligation,
plus
``(2) the portion of the discount on the obligation
attributable to periods before the beginning of such
month (as determined under the principles of section
1272(a) of the Internal Revenue Code of 1986 without
regard to any exceptions contained in paragraph (2) of
such section).
``(d) For purposes of this section, the term `intragovernment
holding' is any obligation issued by the Secretary of the
Treasury to any Federal trust fund or Government account,
whether in respect of public money, money otherwise required to
be deposited in the Treasury, or amounts appropriated.''.
Subtitle D--Risk-assumed Budgeting
SEC. 431. FEDERAL INSURANCE PROGRAMS.
(a) In General.--The Congressional Budget Act of 1974 is
amended by adding after title V the following new title:
``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
``SEC. 602. BUDGETARY TREATMENT.
``(a) President's Budget.--Beginning with fiscal year 2011,
the budget of the Government pursuant to section 1105(a) of
title 31, United States Code, shall be based on the risk-
assumed cost of Federal insurance programs.
``(b) Budget Accounting.--For any Federal insurance program--
``(1) the program account shall--
``(A) pay the risk-assumed cost borne by the
taxpayer to the financing account, and
``(B) pay actual insurance program
administrative costs;
``(2) the financing account shall--
``(A) receive premiums and other income,
``(B) pay all claims for insurance and
receive all recoveries,
``(C) transfer to the program account on not
less than an annual basis amounts necessary to
pay insurance program administrative costs;
``(3) a negative risk-assumed cost shall be
transferred from the financing account to the program
account, and shall be transferred from the program
account to the general fund; and
``(4) all payments by or receipts of the financing
accounts shall be treated in the budget as a means of
financing.
``(c) Appropriations Required.--(1) Notwithstanding any other
provision of law, insurance commitments may be made for fiscal
year 2011 and thereafter only to the extent that new budget
authority to cover their risk-assumed cost is provided in
advance in an appropriation Act.
``(2) An outstanding insurance commitment shall not be
modified in a manner that increases its risk-assumed cost
unless budget authority for the additional cost has been
provided in advance.
``(3) Paragraph (1) shall not apply to Federal insurance
programs that constitute entitlements.
``(d) Reestimates.--The risk-assumed cost for a fiscal year
shall be reestimated in each subsequent year. Such reestimate
can equal zero. In the case of a positive reestimate, the
amount of the reestimate shall be paid from the program account
to the financing account. In the case of a negative reestimate,
the amount of the reestimate shall be paid from the financing
account to the program account, and shall be transferred from
the program account to the general fund. Reestimates shall be
displayed as a distinct and separately identified subaccount in
the program account.
``(e) Administrative Expenses.--All funding for an agency's
administration of a Federal insurance program shall be
displayed as a distinct and separately identified subaccount in
the program account.
``SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING FOR
FEDERAL INSURANCE PROGRAMS.
``(a) Agency Requirements.--Agencies with responsibility for
Federal insurance programs shall develop models to estimate
their risk-assumed cost by year through the budget horizon and
shall submit those models, all relevant data, a justification
for critical assumptions, and the annual projected risk-assumed
costs to OMB with their budget requests each year starting with
the request for fiscal year 2007. Agencies will likewise
provide OMB with annual estimates of modifications, if any, and
reestimates of program costs.
``(b) Disclosure.--When the President submits a budget of the
Government pursuant to section 1105(a) of title 31, United
States Code, for fiscal year 2007, OMB shall publish a notice
in the Federal Register advising interested persons of the
availability of information describing the models, data
(including sources), and critical assumptions (including
explicit or implicit discount rate assumptions) that it or
other executive branch entities would use to estimate the risk-
assumed cost of Federal insurance programs and giving such
persons an opportunity to submit comments. At the same time,
the chairman of the Committee on the Budget shall publish a
notice for CBO in the Federal Register advising interested
persons of the availability of information describing the
models, data (including sources), and critical assumptions
(including explicit or implicit discount rate assumptions) that
it would use to estimate the risk-assumed cost of Federal
insurance programs and giving such interested persons an
opportunity to submit comments.
``(c) Revision.--(1) After consideration of comments pursuant
to subsection (b), and in consultation with the Committees on
the Budget of the House of Representatives and the Senate, OMB
and CBO shall revise the models, data, and major assumptions
they would use to estimate the risk-assumed cost of Federal
insurance programs.
``(2) When the President submits a budget of the Government
pursuant to section 1105(a) of title 31, United States Code,
for fiscal year 2008, OMB shall publish a notice in the Federal
Register advising interested persons of the availability of
information describing the models, data (including sources),
and critical assumptions (including explicit or implicit
discount rate assumptions) that it or other executive branch
entities used to estimate the risk-assumed cost of Federal
insurance programs.
``(d) Display.--
``(1) In general.--For fiscal years 2008, 2009, and
2010 the budget submissions of the President pursuant
to section 1105(a) of title 31, United States Code, and
CBO's reports on the economic and budget outlook
pursuant to section 202(e)(1) and the President's
budgets, shall for display purposes only, estimate the
risk-assumed cost of existing or proposed Federal
insurance programs.
``(2) OMB.--The display in the budget submissions of
the President for fiscal years 2008, 2009, and 2010
shall include--
``(A) a presentation for each Federal
insurance program in budget-account level
detail of estimates of risk-assumed cost;
``(B) a summary table of the risk-assumed
costs of Federal insurance programs; and
``(C) an alternate summary table of budget
functions and aggregates using risk-assumed
rather than cash-based cost estimates for
Federal insurance programs.
``(3) CBO.--In the second session of the 109th
Congress and the 110th Congress, CBO shall include in
its estimates under section 308, for display purposes
only, the risk-assumed cost of existing Federal
insurance programs, or legislation that CBO, in
consultation with the Committees on the Budget of the
House of Representatives and the Senate, determines
would create a new Federal insurance program.
``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6
months after the budget submission of the President pursuant to
section 1105(a) of title 31, United States Code, for fiscal
year 2010, OMB, CBO, and GAO shall each submit to the
Committees on the Budget of the House of Representatives and
the Senate a report that evaluates the advisability and
appropriate implementation of this title.
``(2) Each report made pursuant to paragraph (1) shall
address the following:
``(A) The adequacy of risk-assumed estimation models
used and alternative modeling methods.
``(B) The availability and reliability of data or
information necessary to carry out this title.
``(C) The appropriateness of the explicit or implicit
discount rate used in the various risk-assumed
estimation models.
``(D) The advisability of specifying a statutory
discount rate (such as the Treasury rate) for use in
risk-assumed estimation models.
``(E) The ability of OMB, CBO, or GAO, as applicable,
to secure any data or information directly from any
Federal agency necessary to enable it to carry out this
title.
``(F) The relationship between risk-assumed accrual
budgeting for Federal insurance programs and the
specific requirements of the Balanced Budget and
Emergency Deficit Control Act of 1985.
``(G) Whether Federal budgeting is improved by the
inclusion of risk-assumed cost estimates for Federal
insurance programs.
``(H) The advisability of including each of the
programs currently estimated on a risk-assumed cost
basis in the Federal budget on that basis.
``SEC. 604. DEFINITIONS.
``For purposes of this title:
``(1) The term `Federal insurance program' means a
program that makes insurance commitments and includes
the list of such programs included in the joint
explanatory statement of managers accompanying the
conference report on the Comprehensive Budget Process
Reform Act of 1999.
``(2) The term `insurance commitment' means an
agreement in advance by a Federal agency to indemnify a
nonfederal entity against specified losses. This term
does not include loan guarantees as defined in title V
or benefit programs such as social security, medicare,
and similar existing social insurance programs.
``(3)(A) The term `risk-assumed cost' means the net
present value of the estimated cash flows to and from
the Government resulting from an insurance commitment
or modification thereof.
``(B) The cash flows associated with an insurance
commitment include--
``(i) expected claims payments inherent in
the Government's commitment;
``(ii) net premiums (expected premium
collections received from or on behalf of the
insured less expected administrative expenses);
``(iii) expected recoveries; and
``(iv) expected changes in claims, premiums,
or recoveries resulting from the exercise by
the insured of any option included in the
insurance commitment.
``(C) The cost of a modification is the difference
between the current estimate of the net present value
of the remaining cash flows under the terms of the
insurance commitment, and the current estimate of the
net present value of the remaining cash flows under the
terms of the insurance commitment as modified.
``(D) The cost of a reestimate is the difference
between the net present value of the amount currently
required by the financing account to pay estimated
claims and other expenditures and the amount currently
available in the financing account. The cost of a
reestimate shall be accounted for in the current year
in the budget of the Government pursuant to section
1105(a) of title 31, United States Code.
``(E) For purposes of this definition, expected
administrative expenses shall be construed as the
amount estimated to be necessary for the proper
administration of the insurance program. This amount
may differ from amounts actually appropriated or
otherwise made available for the administration of the
program.
``(4) The term `program account' means the budget
account for the risk-assumed cost, and for paying all
costs of administering the insurance program, and is
the account from which the risk-assumed cost is
disbursed to the financing account.
``(5) The term `financing account' means the
nonbudget account that is associated with each program
account which receives payments from or makes payments
to the program account, receives premiums and other
payments from the public, pays insurance claims, and
holds balances.
``(6) The term `modification' means any Government
action that alters the risk-assumed cost of an existing
insurance commitment from the current estimate of cash
flows. This includes any action resulting from new
legislation, or from the exercise of administrative
discretion under existing law, that directly or
indirectly alters the estimated cost of existing
insurance commitments.
``(7) The term `model' means any actuarial,
financial, econometric, probabilistic, or other
methodology used to estimate the expected frequency and
magnitude of loss-producing events, expected premiums
or collections from or on behalf of the insured,
expected recoveries, and administrative expenses.
``(8) The term `current' has the same meaning as in
section 250(c)(9) of the Balanced Budget and Emergency
Deficit Control Act of 1985.
``(9) The term `OMB' means the Director of the Office
of Management and Budget.
``(10) The term `CBO' means the Director of the
Congressional Budget Office.
``(11) The term `GAO' means the Comptroller General
of the United States.
``SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL COST
ACCOUNT.
``(a) Authorization of Appropriations.--There is authorized
to be appropriated $600,000 for each of fiscal years 2005
through 2010 to the Director of the Office of Management and
Budget and each agency responsible for administering a Federal
program to carry out this title.
``(b) Treasury Transactions With the Financing Accounts.--The
Secretary of the Treasury shall borrow from, receive from, lend
to, or pay the insurance financing accounts such amounts as may
be appropriate. The Secretary of the Treasury may prescribe
forms and denominations, maturities, and terms and conditions
for the transactions described above. The authorities described
above shall not be construed to supersede or override the
authority of the head of a Federal agency to administer and
operate an insurance program. All the transactions provided in
this subsection shall be subject to the provisions of
subchapter II of chapter 15 of title 31, United States Code.
Cash balances of the financing accounts in excess of current
requirements shall be maintained in a form of uninvested funds,
and the Secretary of the Treasury shall pay interest on these
funds.
``(c) Appropriation of Amount Necessary To Cover Risk-Assumed
Cost of Insurance Commitments at Transition Date.--(1) A
financing account is established on September 30, 2010, for
each Federal insurance program.
``(2) There is appropriated to each financing account the
amount of the risk-assumed cost of Federal insurance
commitments outstanding for that program as of the close of
September 30, 2010.
``(3) These financing accounts shall be used in implementing
the budget accounting required by this title.
``SEC. 606. EFFECTIVE DATE.
``(a) In General.--This title shall take effect immediately
and shall expire on September 30, 2012.
``(b) Special Rule.--If this title is not reauthorized by
September 30, 2012, then the accounting structure and budgetary
treatment of Federal insurance programs shall revert to the
accounting structure and budgetary treatment in effect
immediately before the date of enactment of this title.''.
(b) Conforming Amendment.--The table of contents set forth
in section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by inserting after the item
relating to section 507 the following new items:
``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS
``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting for
Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial cost
account.
``Sec. 606. Effective date.''.
TITLE V--MAINTAINING A COMMITMENT TO THE FAMILY BUDGET
Subtitle A--Further Enforcement Amendments
SEC. 501. SUPER-MAJORITY POINTS OF ORDER IN THE HOUSE OF
REPRESENTATIVES AND THE SENATE.
(a) Section 904 of the Congressional Budget Act of 1974 is
amended as follows:
(1) In subsection 904(c)(1), insert ``312(g), (h),
(i), and (j),'' before ``313,'', and insert ``316,
318,'' before ``904(c),''.
(2) In subsection (c) strike ``three-fifths'' each
place it appears and insert ``two-thirds''.
(3)(A) In subsection (d)(2), insert ``312(g), (h),
(i), and (j),'' before ``313,'', and insert ``316,
318,'' before ``904(c),''.
(B) In subsection (d), strike ``three-fifths'' each
place it appears and insert ``two-thirds''.
(4)(A) In subsections (c)(2) and (d)(3), strike
``311(a),''.
(B) In subsections (c)(1) and (d)(2) insert
``311(a),'' after ``310(d)(2),''.
(5) In subsections (c)(1), (c)(2), (d)(2), and (d)(3)
by inserting ``or the House of Representatives'' after
``Senate'' each place it appears.
(6) In subsection (e), strike ``2002'' and insert
``2010''.
SEC. 502. BUDGET RESOLUTION ENFORCEMENT POINT OF ORDER.
(a) Entitlement Point of Order.--Section 312 of the
Congressional Budget Act of 1974 (as amended by section 221(d))
is further amended by adding at the end the following new
subsection:
``(j) Budget Resolution Enforcement Point of Order.--It shall
not be in order in the House of Representatives or the Senate
to consider any joint resolution on the budget for a fiscal
year, or amendment thereto or conference report thereon, that--
``(1) is not consistent with the discretionary
spending limits set forth in section 251(b) of the
Balanced Budget and Emergency Deficit Control Act of
1985; or
``(2) provides for an increase in the aggregate level
of direct spending for the fiscal year of the
resolution or any ensuing fiscal year included in such
resolution.''.
SEC. 503. POINT OF ORDER WAIVER PROTECTION.
Rule XIII of the Rules of the House of Representatives is
amended by adding at the end the following new clause:
``8. (a) It shall not be in order to consider a rule or order
that would waive waive the provisions of any section of the
Congressional Budget Act of 1974 referred to in section
904(c)(1) of such Act or of section 302 of the Family Budget
Protection Act of 2004.
``(b) As disposition of a point of order under paragraph (a),
the Chair shall put the question of consideration with respect
to the proposition that is the subject of the point of order. A
question of consideration under this clause shall be debatable
for 10 minutes by the Member initiating the point of order and
for 10 minutes by an opponent of the point of order, but shall
otherwise be decided without intervening motion except one that
the House adjourn or that the Committee of the Whole rise, as
the case may be.
``(c) The disposition of the question of consideration under
this clause with respect to a bill or joint resolution shall be
considered also to determine the question of consideration
under this clause with respect to an amendment made in order as
original text.''.
Subtitle B--The Byrd Rule
SEC. 511. LIMITATION ON BYRD RULE.
(a) Protection of Conference Reports.--Section 313 of the
Congressional Budget Act of 1974 is amended--
(1) in subsection (b)(1), by striking subparagraph
(E) through the semicolon at the end thereof and by
redesignating subparagraph (F) as subparagraph (E);
(2) in subsection (c), by striking ``and again upon
the submission of a conference report on such a
reconciliation bill or resolution,'';
(3) by striking subsection (d);
(4) by redesignating subsection (e) as subsection
(d); and
(5) in subsection (e), as redesignated--
(A) by striking ``, motion, or conference
report'' the first place it appears and
inserting ``, or motion''; and
(B) by striking ``, motion, or conference
report'' the second and third places it appears
and inserting ``or motion''.
(b) Conforming Amendment.--The first sentence of section
312(e) of the Congressional Budget Act of 1974 is amended by
inserting ``, except for section 313,'' after ``Act''.
Subtitle C--Treatment of Extraneous Appropriations in Omnibus
Appropriation Measures
SEC. 521. TREATMENT OF EXTRANEOUS APPROPRIATIONS.
(a) In General.--Title III of the Congressional Budget Act of
1974 (as amended by section 127(a)) is further amended by
adding at the end the following new section:
``TREATMENT OF EXTRANEOUS APPROPRIATIONS IN OMNIBUS APPROPRIATION
MEASURES
``Sec. 319. (a) Point of Order.--It shall not be in order in
the House of Representatives or the Senate to consider an
omnibus appropriation measure, or any amendment thereto or
conference report thereon, that appropriates funds for any
program, project, or activity that is not within the subject-
matter jurisdiction of any subcommittee of the Committee on
Appropriations of the House of Representatives or Senate, as
applicable, with jurisdiction over any regular appropriation
bill contained in such measure.
``(b) Definitions.--As used in this section:
``(1) The term `omnibus appropriation measure' means
any bill or joint resolution making continuing
appropriations for a fiscal year and that is comprised
of more than one regular appropriation bills.
``(2) The term `regular appropriation bill' means any
annual appropriation bill making appropriations,
otherwise making funds available, or granting
authority, for any of the following categories of
projects and activities:
``(A) Agriculture, rural development, Food
and Drug Administration, and related agencies
programs.
``(B) The Departments of Commerce, Justice,
and State, the Judiciary, and related agencies.
``(C) The Department of Defense.
``(D) The government of the District of
Columbia and other activities chargeable in
whole or in part against the revenues of the
District.
``(E) Energy and water development.
``(F) Foreign operations, export financing,
and related programs.
``(G) The Department of Homeland Security.
``(H) The Department of the Interior and
related agencies.
``(I) The Departments of Labor, Health and
Human Services, and Education, and related
agencies.
``(J) The Legislative Branch.
``(K) Military construction, family housing,
and base realignment and closure for the
Department of Defense.
``(L) The Departments of Transportation and
Treasury, and independent agencies.
``(M) The Departments of Veterans Affairs and
Housing and Urban Development, and sundry
independent agencies, boards, commissions,
corporations, and offices.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by inserting after the item
relating to section 318 the following new item:
``Sec. 319. Treatment of extraneous appropriations in omnibus
appropriation measures.''.
____________________________________________________
17. An Amendment in the Nature of a Substitute To Be Offered by
Representative Kirk of Illinois, or His Designee, Debatable for 30
Minutes
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Deficit
Control Act of 2004''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Effective date.
Sec. 3. Protection of social security and medicare benefits.
TITLE I--A SIMPLIFIED BUDGET
Subtitle A--Rainy Day Fund for Emergencies
Sec. 101. Purpose.
Sec. 102. Repeal of adjustments for emergencies.
Sec. 103. OMB emergency criteria.
Sec. 104. Development of guidelines for application of emergency
definition.
Sec. 105. Reserve fund for emergencies in President's budget.
Sec. 106. Adjustments and reserve fund for emergencies in concurrent
budget resolutions.
Sec. 107. Up-to-date tabulations.
Sec. 108. Prohibition on amendments to emergency reserve fund.
Sec. 109. Content of budget resolutions.
Subtitle B--The Baseline
Sec. 111. Elimination of inflation adjustment.
Sec. 112. The President's budget.
Sec. 113. The congressional budget.
Sec. 114. Congressional budget office reports to committees.
Sec. 115. Treatment of emergencies.
TITLE II--IMPLEMENTING FEDERAL SPENDING DISCIPLINE
Subtitle A--Spending Safeguards on the Growth of Entitlements and
Mandatories
Sec. 201. Spending caps on growth of entitlements and mandatories.
Sec. 202. Exempt programs and activities.
Sec. 203. Exceptions, limitations, and special rules.
Sec. 204. Point of order.
Sec. 205. Technical and conforming amendments.
Subtitle B--Discretionary Spending Limits
Sec. 211. Enforcing discretionary spending limits.
Sec. 212. Annual joint resolution establishing discretionary spending
limits.
TITLE III--COMBATING WASTE, FRAUD, AND ABUSE.
Subtitle A--Enhanced Rescissions of Budget Authority Identified by the
President as Wasteful Spending
Sec. 301. Enhanced consideration of certain proposed rescissions.
Subtitle B--Commission to Eliminate Waste, Fraud, and Abuse
Sec. 311. Establishment of Commission.
Sec. 312. Duties of the Commission.
Sec. 313. Powers of the Commission.
Sec. 314. Commission personnel matters.
Sec. 315. Termination of the Commission.
Sec. 316. Authorization of appropriations.
TITLE IV--TRUTH IN ACCOUNTING
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees and Uniformed Services Personnel
Sec. 401. Civil Service Retirement System.
Sec. 402. Central Intelligence Agency Retirement and Disability System.
Sec. 403. Foreign Service Retirement and Disability System.
Sec. 404. Public Health Service Commissioned Corps Retirement System.
Sec. 405. National Oceanic and Atmospheric Administration Commissioned
Officer Corps Retirement System.
Sec. 406. Coast Guard Military Retirement System.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs for
Federal Employees
Sec. 411. Federal employees health benefits fund.
Sec. 412. Funding uniformed services health benefits for all retirees.
Sec. 413. Effective date.
Subtitle C--Limit on the Public Debt
Sec. 421. Limit on public debt.
TITLE V--PAYGO EXTENSION
Sec. 501. PAYGO extension.
SEC. 2. EFFECTIVE DATE.
Except as otherwise specifically provided, this Act and the
amendments made by this Act shall become effective on the date
of enactment of this Act and shall apply with respect to fiscal
years beginning after September 30, 2005.
SEC. 3. PROTECTION OF SOCIAL SECURITY AND MEDICARE BENEFITS.
Notwithstanding any other provision in law, nothing in titles
I through V shall be construed to reduce benefits entitled to
Americans through social security and medicare.
TITLE I--A SIMPLIFIED BUDGET
Subtitle A--Rainy Day Fund for Emergencies
SEC. 101. PURPOSE.
The purposes of this subtitle are to--
(1) develop budgetary and fiscal procedures for
emergencies;
(2) subject spending for emergencies to budgetary
procedures and controls; and
(3) establish criteria for determining compliance
with emergency requirements.
SEC. 102. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.
(a) Elimination of Emergency Designation.--Sections 252(e)
and 252(d)(4)(B) of the Balanced Budget and Emergency Deficit
Control Act of 1985 are repealed.
(b) Elimination of Adjustments.--Section 314 of the
Congressional Budget Act of 1974 is repealed.
(c) Conforming Amendment.--Clause 2 of rule XXI of the Rules
of the House of Representatives is amended by repealing
paragraph (e) and by redesignating paragraph (f) as paragraph
(e).
SEC. 103. OMB EMERGENCY CRITERIA.
(a) Definition of Emergency.--Section 3 of the Congressional
Budget and Impoundment Control Act of 1974 is amended by adding
at the end the following new paragraph:
``(11)(A) The term `emergency' means a situation
that--
``(i) requires new budget authority and
outlays (or new budget authority and the
outlays flowing therefrom) for the prevention
or mitigation of, or response to, loss of life
or property, or a threat to national security;
and
``(ii) is unanticipated.
``(B) As used in subparagraph (A), the term
`unanticipated' means that the situation is--
``(i) sudden, which means quickly coming into
being or not building up over time;
``(ii) urgent, which means a pressing and
compelling need requiring immediate action;
``(iii) unforeseen, which means not predicted
or anticipated as an emerging need; and
``(iv) temporary, which means not of a
permanent duration.''.
(b) Conforming Amendment.--Section 250(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985 is amended by
adding at the end the following new paragraph:
``(20) The term `emergency' has the meaning given to
such term in section 3 of the Congressional Budget and
Impoundment Control Act of 1974.''.
SEC. 104. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF EMERGENCY
DEFINITION.
Not later than 5 months after the date of enactment of this
Act, the chairmen of the Committees on the Budget (in
consultation with the President) shall, after consulting with
the chairmen of the Committees on Appropriations and applicable
authorizing committees of their respective Houses and the
Directors of the Congressional Budget Office and the Office of
Management and Budget, jointly publish in the Congressional
Record guidelines for application of the definition of
emergency set forth in section 3(11) of the Congressional
Budget and Impoundment Control Act of 1974.
SEC. 105. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.
Section 1105(f) of title 31, United States Code is amended by
adding at the end the following new sentences: ``Such budget
submission shall also comply with the requirements of section
316(b) of the Congressional Budget Act of 1974 and, in the case
of any budget authority requested for an emergency, such
submission shall include a detailed justification of why such
emergency is an emergency within the meaning of section 3(11)
of the Congressional Budget Act of 1974.''.
SEC. 106. ADJUSTMENTS AND RESERVE FUND FOR EMERGENCIES IN CONCURRENT
BUDGET RESOLUTIONS.
(a) Emergencies.--Title III of the Congressional Budget Act
of 1974 is amended by adding at the end the following new
section:
``EMERGENCIES
``Sec. 316. (a) Adjustments.--
``(1) In general.--After the reporting of a bill or
joint resolution or the submission of a conference
report thereon that provides budget authority for any
emergency as identified pursuant to subsection (d) that
is not covered by subsection (c)--
``(A) the chairman of the Committee on the
Budget of the House of Representatives or the
Senate shall determine and certify, pursuant to
the guidelines referred to in section 104 of
the Deficit Control Act of 2004, the portion
(if any) of the amount so specified that is for
an emergency within the meaning of section
3(11); and
``(B) such chairman shall make the adjustment
set forth in paragraph (2) for the amount of
new budget authority (or outlays) in that
measure and the outlays flowing from that
budget authority.
``(2) Matters to be adjusted.--The adjustments
referred to in paragraph (1) are to be made to the
allocations made pursuant to the appropriate concurrent
resolution on the budget pursuant to section 302(a) and
shall be in an amount not to exceed the amount reserved
for emergencies pursuant to the requirements of
subsection (b).
``(b) Reserve Fund for Emergencies.--
``(1) Amounts.--The amount set forth in the reserve
fund for emergencies (other than those covered by
subsection (c)) for budget authority and outlays for a
fiscal year pursuant to section 301(a)(4) shall equal--
``(A) the average of the enacted levels of
budget authority for emergencies (other than
those covered by subsection (c)) in the 5
fiscal years preceding the current year; and
``(B) the average of the levels of outlays
for emergencies in the 5 fiscal years preceding
the current year flowing from the budget
authority referred to in subparagraph (A), but
only in the fiscal year for which such budget
authority first becomes available for
obligation.
``(2) Average levels.--For purposes of paragraph (1),
the amount used for a fiscal year to calculate the
average of the enacted levels when one or more of such
5 preceding fiscal years is any of fiscal years 2000
through 2004 is as follows: the amount of enacted
levels of budget authority and the amount of new
outlays flowing therefrom for emergencies, but only in
the fiscal year for which such budget authority first
becomes available for obligation for each of such 5
fiscal years, which shall be determined by the
Committees on the Budget of the House of
Representatives and the Senate after receipt of a
report on such matter transmitted to such committees by
the Director of the Congressional Budget Office 6
months after the date of enactment of this section and
thereafter in February of each calendar year.
``(c) Treatment of Emergencies To Fund Certain Military
Operations and Other Extraordinary and Critical Needs.--
Whenever the Committee on Appropriations reports any bill or
joint resolution that provides budget authority for any
emergency that is a threat to national security and the funding
of which carries out a military operation authorized by a
declaration of war or a joint resolution authorizing the use of
military force, or for any other emergency designated by the
President and the Congress as relating to extraordinary and
critical needs, and the report accompanying that bill or joint
resolution, pursuant to subsection (d), identifies any
provision that increases outlays or provides budget authority
(and the outlays flowing therefrom) for such emergency, the
enactment of which would cause the total amount of budget
authority or outlays provided for emergencies for the budget
year in the concurrent resolution on the budget (pursuant to
section 301(a)(4)) to be exceeded, such bill or joint
resolution may be considered in the House or the Senate, as the
case may be.
``(d) Committee Notification of Emergency Legislation.--
Whenever the Committee on Appropriations or any other committee
of either House (including a committee of conference) reports
any bill or joint resolution that provides budget authority for
any emergency, the report accompanying that bill or joint
resolution (or the joint explanatory statement of managers in
the case of a conference report on any such bill or joint
resolution) shall identify all provisions that provide budget
authority and the outlays flowing therefrom for such emergency
and include a statement of the reasons why such budget
authority meets the definition of an emergency pursuant to the
guidelines referred to in section 104 of the Deficit Control
Act of 2004.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by inserting after the item
relating to section 315 the following new item:
``Sec. 316. Emergencies.''.
SEC. 107. UP-TO-DATE TABULATIONS.
Section 308(b)(2) of the Congressional Budget Act of 1974 is
amended by striking ``and'' at the end of subparagraph (B), by
striking the period at the end of subparagraph (C) and
inserting ``; and'', and by adding at the end the following new
subparagraph:
``(D) shall include an up-to-date tabulation
of amounts remaining in the reserve fund for
emergencies.''.
SEC. 108. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE FUND.
(a) Point of Order.--Section 305 of the Congressional Budget
Act of 1974 is amended by adding at the end the following new
subsection:
``(e) Point of Order Regarding Emergency Reserve Fund.--It
shall not be in order in the House of Representatives or in the
Senate to consider an amendment to a concurrent resolution on
the budget which changes the amount of budget authority and
outlays set forth in section 301(a)(4) for emergency reserve
fund.''.
(b) Technical Amendment.--(1) Section 904(c)(1) of the
Congressional Budget Act of 1974 is amended by inserting
``305(e),'' after ``305(c)(4),''.
(2) Section 904(d)(2) of the Congressional Budget Act of 1974
is amended by inserting ``305(e),'' after ``305(c)(4),''.
SEC. 109. CONTENT OF BUDGET RESOLUTIONS.
Section 301(a)(4) of the Congressional Budget Act of 1974 is
amended by inserting before the semicolon at the end the
following: ``, and for emergencies (for the reserve fund in
section 316(b) and for military operations in section
316(c))''.
Subtitle B--The Baseline
SEC. 111. ELIMINATION OF INFLATION ADJUSTMENT.
Section 257(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended--
(1) in paragraph (1) by striking ``for inflation as
specified in paragraph (5),''; and
(2) by striking paragraph (5) and redesignating
paragraph (6) as paragraph (5).
SEC. 112. THE PRESIDENT'S BUDGET.
(a) Paragraph (5) of section 1105(a) of title 31, United
States Code, is amended to read as follows:
``(5) except as provided in subsection (b) of this
section, estimated expenditures and appropriations for
the current year and estimated expenditures and
proposed appropriations the President decides are
necessary to support the Government in the fiscal year
for which the budget is submitted and the 4 fiscal
years following that year, and, except for detailed
budget estimates, the percentage change from the
current year to the fiscal year for which the budget is
submitted for estimated expenditures and for
appropriations.''.
(b) Section 1105(a)(6) of title 31, United States Code, is
amended to read as follows:
``(6) estimated receipts of the Government in the
current year and the fiscal year for which the budget
is submitted and the 4 fiscal years after that year
under--
``(A) laws in effect when the budget is
submitted; and
``(B) proposals in the budget to increase
revenues,
and the percentage change (in the case of each category
referred to in subparagraphs (A) and (B)) between the
current year and the fiscal year for which the budget
is submitted and between the current year and each of
the 9 fiscal years after the fiscal year for which the
budget is submitted.''.
(c) Section 1105(a)(12) of title 31, United States Code, is
amended to read as follows:
``(12) for each proposal in the budget for
legislation that would establish or expand a Government
activity or function, a table showing--
``(A) the amount proposed in the budget for
appropriation and for expenditure because of
the proposal in the fiscal year for which the
budget is submitted;
``(B) the estimated appropriation required
because of the proposal for each of the 4
fiscal years after that year that the proposal
will be in effect; and
``(C) the estimated amount for the same
activity or function, if any, in the current
fiscal year,
and, except for detailed budget estimates, the
percentage change (in the case of each category
referred to in subparagraphs (A), (B), and (C)) between
the current year and the fiscal year for which the
budget is submitted.''.
(d) Section 1105(a)(18) of title 31, United States Code, is
amended by inserting ``new budget authority and'' before
``budget outlays''.
(e) Section 1105(a) of title 31, United States Code, is
amended by adding at the end the following new paragraphs:
``(35) a comparison of levels of estimated
expenditures and proposed appropriations for each
function and subfunction in the current fiscal year and
the fiscal year for which the budget is submitted,
along with the proposed increase or decrease of
spending in percentage terms for each function and
subfunction.
``(36) a table on sources of growth in total direct
spending under current law and as proposed in this
budget submission for the budget year and the ensuing 9
fiscal years, which shall include changes in outlays
attributable to the following: cost-of-living
adjustments; changes in the number of program
recipients; increases in medical care prices,
utilization and intensity of medical care; and residual
factors.''.
(f) Section 1109(a) of title 31, United States Code, is
amended by inserting after the first sentence the following new
sentence: ``For discretionary spending, these estimates shall
assume the levels set forth in the discretionary spending
limits under section 251(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as adjusted, for the
appropriate fiscal years (and if no such limits are in effect,
these estimates shall assume the adjusted levels for the most
recent fiscal year for which such levels were in effect).''.
SEC. 113. THE CONGRESSIONAL BUDGET.
Section 301(e) of the Congressional Budget Act of 1974 (as
amended by section 103) is further amended--
(1) in paragraph (1), by inserting at the end the
following: ``The basis of deliberations in developing
such concurrent resolution shall be the estimated
budgetary levels for the preceding fiscal year. Any
budgetary levels pending before the committee and the
text of the concurrent resolution shall be accompanied
by a document comparing such levels or such text to the
estimated levels of the prior fiscal year. Any
amendment offered in the committee that changes a
budgetary level and is based upon a specific policy
assumption for a program, project, or activity shall be
accompanied by a document indicating the estimated
amount for such program, project, or activity in the
current year.''; and
(2) in paragraph (2), by striking ``and'' at the end
of subparagraph (H) (as redesignated), by striking the
period and inserting ``; and'' at the end of
subparagraph (I) (as redesignated), and by adding at
the end the following new subparagraph:
``(J) a comparison of levels for the current
fiscal year with proposed spending and revenue
levels for the subsequent fiscal years along
with the proposed increase or decrease of
spending in percentage terms for each
function.''.
SEC. 114. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.
(a) The first sentence of section 202(e)(1) of the
Congressional Budget Act of 1974 is amended by inserting
``compared to comparable levels for the current year'' before
the comma at the end of subparagraph (A) and before the comma
at the end of subparagraph (B).
(b) Section 202(e)(1) of the Congressional Budget Act of 1974
is amended by inserting after the first sentence the following
new sentence: ``Such report shall also include a table on
sources of spending growth in total direct spending for the
budget year and the ensuing 4 fiscal years, which shall include
changes in outlays attributable to the following: cost-of-
living adjustments; changes in the number of program
recipients; increases in medical care prices, utilization and
intensity of medical care; and residual factors.''.
(c) Section 308(a)(1)(B) of the Congressional Budget Act of
1974 is amended by inserting ``and shall include a comparison
of those levels to comparable levels for the current fiscal
year'' before ``if timely submitted''.
(d) Section 202(e) of the Congressional Budget Act of 1974 is
amended by adding at the end the following new paragraph:
``(4) On or before February 15 of each year, the
Director shall submit to the Committees on the Budget
of the House of Representatives and the Senate, a
report for the fiscal year ending on September 30 of
the preceding year, with respect to entitlement
spending, including (A) a comparison of actual spending
for entitlements, on an account by account basis, with
projected spending for such entitlements assumed in the
concurrent resolution of the budget for that fiscal
year and (B) an identification of those entitlements
for which the actual spending exceeded the projected
spending.''.
SEC. 115. TREATMENT OF EMERGENCIES.
Section 257(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (as amended by section 111) is further
amended by adding at the end the following new paragraph:
``(6) Emergencies.--Budgetary resources for
emergencies shall be at the level provided in the
reserve fund for emergencies for that fiscal year
pursuant to section 301(a)(4) of the Congressional
Budget Act of 1974.''.
TITLE II--IMPLEMENTING FEDERAL SPENDING DISCIPLINE
Subtitle A--Spending Safeguards on the Growth of Entitlements and
Mandatories
SEC. 201. SPENDING CAPS ON GROWTH OF ENTITLEMENTS AND MANDATORIES.
(a) Control of Entitlements and Mandatories.--The Balanced
Budget and Emergency Deficit Control Act of 1985 is amended by
adding after section 252 the following new section:
``SEC. 252A. ENFORCING CONTROLS ON DIRECT SPENDING.
``(a) Cap on Growth of Entitlements.--Effective for fiscal
year 2006 and for each ensuing fiscal year, the total level of
direct spending for all direct spending programs, projects, and
activities (excluding social security, medicare, and net
interest spending) for any such fiscal year shall not exceed
the total level of spending for all such programs, projects,
and activities for the previous fiscal year after the direct
spending for each such program, project, or activity is
increased by--
``(1) the higher of the change in the Consumer Price
Index for All Urban Consumers or the inflator (if any)
applicable to that program, project, or activity; and
``(2) the growth in eligible population for such
program, project, or activity.
``(b) Sequestration.--Within 15 days after Congress adjourns
to end a session (other than of the second session of the One
Hundred Eighth Congress), and on the same day as a
sequestration (if any) under section 251, there shall be a
sequestration to reduce the amount of direct spending for the
fiscal year beginning in the year the Congress adjourns by any
amount necessary to reduce such spending to the level set forth
in subsection (a) unless that amount is less than $250,000,000.
``(c) Uniform Reductions; Limitations.--The amount required
to be sequestered for the fiscal year under subsection (a)
shall be obtained from nonexempt direct spending accounts by
actions taken in the following order:
``(1) First.--The reductions in the programs
specified in section 256(a) (National Wool Act and
special milk), section 256(b) (guaranteed student
loans), and section 256(c) (foster care and adoption
assistance) shall be made.
``(2) Second.--Any additional reductions that may be
required shall be achieved by reducing each remaining
nonexempt direct spending account by the uniform
percentage necessary to achieve those additional
reductions, except that--
``(A) the low-income programs specified in
section 256(d) shall not be reduced by more
than 2 percent; and
``(B) the retirement and veterans benefits
specified in sections 256(f), (g), and (h)
shall not be reduced by more than 2 percent in
the manner specified in that section.
The limitations set forth in subparagraphs (A) and (B)
shall be applied iteratively, and after each iteration
the uniform percentage applicable to all other programs
under this paragraph shall be increased (if necessary)
to a level sufficient to achieve the reductions
required by this paragraph.''.
(b) Table of Contents Amendment.--The table of contents set
forth in 250(a) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by adding after the item
relating to section 252 the following new item:
``Sec. 252A. Enforcing controls on direct spending.''.
SEC. 202. EXEMPT PROGRAMS AND ACTIVITIES.
Section 255 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:
``SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
``(a) Social Security Benefits; Tier I Railroad Retirement
Benefits; and Medicare Benefits.--(1) Benefits payable under
the old-age, survivors, and disability insurance program
established under title II of the Social Security Act, and
benefits payable under section 3(a), 3(f)(3), 4(a), or 4(f) of
the Railroad Retirement Act of 1974, shall be exempt from
reduction under any order issued under this part.
``(2) Payments made under title XVIII (relating to medicare
of the Social Security Act shall be exempt from reduction under
any order issued under this part.
``(b) Descriptions and Lists.--The following budget accounts
or activities shall be exempt from sequestration:
``(1) net interest;
``(2) all payments to trust funds from excise taxes
or other receipts or collections properly creditable to
those trust funds;
``(3) all payments from one Federal direct spending
budget account to another Federal budget account; and
all intragovernmental funds including those from which
funding is derived primarily from other Government
accounts, except to the extent that such funds are
augmented by direct appropriations for the fiscal year
for which the order is in effect;
``(4) activities resulting from private donations,
bequests, or voluntary contributions to the Government;
``(5) payments from any revolving fund or trust-
revolving fund (or similar activity) that provides
deposit insurance or other Government insurance,
Government guarantees, or any other form of contingent
liability, to the extent those payments result from
contractual or other legally binding commitments of the
Government at the time of any sequestration;
``(6) credit liquidating and financing accounts;
``(7) the following accounts, which largely fulfill
requirements of the Constitution or otherwise make
payments to which the Government is committed:
``Administration of Territories, Northern
Mariana Islands Covenant grants (14-0412-0-1-
806);
``Armed Forces Retirement Home Trust Fund,
payment of claims (84-8930-0-7-705);
``Bureau of Indian Affairs, miscellaneous
payments to Indians (14-2303-0-1-452);
``Bureau of Indian Affairs, miscellaneous
trust funds, tribal trust funds (14-9973-0-7-
999);
``Claims, defense;
``Claims, judgments, and relief act (20-1895-
0-1-806);
``Compact of Free Association, economic
assistance pursuant to Public Law 99-658 (14-
0415-0-1-806);
``Compensation of the President (11-0001-0-1-
802);
``Customs Service, miscellaneous permanent
appropriations (20-9992-0-2-852);
``Eastern Indian land claims settlement fund
(14-2202-0-1-806);
``Farm Credit Administration, Limitation on
Administration Expenses (78-4131-0-3-351);
``Farm Credit System Financial Assistance
Corporation, interest payments (20-1850-0-1-
351);
``Internal Revenue collections of Puerto Rico
(20-5737-0-2-852);
``Panama Canal Commission, operating expenses
and capital outlay (95-5190-0-2-403);
``Payments of Vietnam and USS Pueblo
prisoner-of-war claims (15-0104-0-1-153);
``Payments to copyright owners (03-5175-0-2-
376);
``Payments to health care trust funds (75-
0580-0-1-571);
``Payments to social security trust funds
(75-0404-0-1-651);
``Payments to the United States territories,
fiscal assistance (14-0418-0-1-801);
``Payments to widows and heirs of deceased
Members of Congress (00-0215-0-1-801);
``Pension Benefit Guaranty Corporation Fund
(16-4204-0-3-601);
``Salaries of Article III judges;
``Washington Metropolitan Area Transit
Authority, interest payments (46-0300-0-1-401);
``(8) the following noncredit special, revolving, or
trust-revolving funds:
``Coinage profit fund (20-5811-0-2-803);
``Comptroller of the Currency;
``Director of the Office of Thrift
Supervision;
``Exchange Stabilization Fund (20-4444-0-3-
155);
``Federal Housing Finance Board;
``Foreign Military Sales trust fund (11-
82232-0-7-155);
``National Credit Union Administration,
central liquidating facility (25-4470-0-3-373);
``National Credit Union Administration,
credit union insurance fund (25-4468-0-3-373);
``National Credit Union Administration
operating fund (25-4056-0-3-373); and
``Resolution Trust Corporation Revolving Fund
(22-4055-0-3-373);
``(9) Thrift Savings Fund;
``(10) appropriations for the District of Columbia to
the extent they are appropriations of locally raised
funds;
``(11)(A) any amount paid as regular unemployment
compensation by a State from its account in the
Unemployment Trust Fund (established by section 904(a)
of the Social Security Act);
``(B) any advance made to a State from the Federal
unemployment account (established by section 904(g) of
such Act) under title XII of such Act and any advance
appropriated to the Federal unemployment account
pursuant to section 1203 of such Act; and
``(C) any payment made from the Federal Employees
Compensation Account (as established under section 909
of such Act) for the purpose of carrying out chapter 85
of title 5, United States Code, and funds appropriated
or transferred to or otherwise deposited in such
Account;
``(12)(A) FDIC, Bank Insurance Fund (51-4064-0-3-
373);
``(B) FDIC, FSLIC Resolution Fund (51-4065-0-3-373);
and
``(C) FDIC, Savings Association Insurance Fund (51-
4066-0-3-373); and
``(13) Food Stamp Programs (12-3505-0-1-605).
``(c) Federal Retirement and Disability Accounts.--The
following Federal retirement and disability accounts shall be
exempt from reduction under any order issued under this part:
``Civil service retirement and disability fund (24-
8135-0-7-602).
``Black Lung Disability Trust Fund (20-8144-0-7-601).
``Foreign Service Retirement and Disability Fund (19-
8186-0-7-602).
``District of Columbia Judicial Retirement and
Survivors Annuity Fund (20-8212-0-7-602).
``Judicial Survivors' Annuities Fund (10-8110-0-7-
602).
``Payments to the Railroad Retirement Accounts (60-
0113-0-1-601).
``Tax Court Judges Survivors Annuity Fund (23-8115-0-
7-602).
``Employees Life Insurance Fund (24-8424-0-8-602).
``(d) Federal Administrative Expenses.--
``(1) Notwithstanding any provision of law other than
paragraph (3), administrative expenses incurred by the
departments and agencies, including independent
agencies, of the Government in connection with any
program, project, activity, or account shall be subject
to reduction pursuant to any sequestration order,
without regard to any exemption, exception, limitation,
or special rule otherwise applicable with respect to
such program, project, activity, or account, and
regardless of whether the program, project, activity,
or account is self-supporting and does not receive
appropriations.
``(2) Payments made by the Government to reimburse or
match administrative costs incurred by a State or
political subdivision under or in connection with any
program, project, activity, or account shall not be
considered administrative expenses of the Government
for purposes of this section, and shall be subject to
sequestration to the extent (and only to the extent)
that other payments made by the Government under or in
connection with that program, project, activity, or
account are subject to that reduction or sequestration;
except that Federal payments made to a State as
reimbursement of administrative costs incurred by that
State under or in connection with the unemployment
compensation programs specified in subsection (a)(11)
shall be subject to reduction or sequestration under
this part notwithstanding the exemption otherwise
granted to such programs under that subsection.
``(3) Notwithstanding any other provision of law, the
administrative expenses of the following programs shall
be exempt from sequestration:
``(A) Comptroller of the Currency.
``(B) Federal Deposit Insurance Corporation.
``(C) Office of Thrift Supervision.
``(D) National Credit Union Administration.
``(E) National Credit Union Administration,
central liquidity facility.
``(F) Federal Retirement Thrift Investment
Board.
``(G) Resolution Funding Corporation.
``(H) Resolution Trust Corporation.
``(I) Board of Governors of the Federal
Reserve System.
``(e) Veterans' Programs.--The following programs shall be
exempt from reduction under any order issued under this part:
``General Post Funds (36-8180-0-7-705).
``Veterans Insurance and Indemnities (36-0120-0-1-
701).
``Service-Disabled Veterans Insurance Funds (36-4012-
0-701).
``Veterans Reopened Insurance Fund (36-4010-0-3-701).
``Servicemembers' Group Life Insurance Fund (36-4009-
0-3-701).
``Post-Vietnam Era Veterans Education Account (36-
8133-0-7-702).
``National Service Life Insurance Fund (36-8132-0-7-
701).
``United States Government Life Insurance Fund (36-
8150-0-7-701).
``Veterans Special Life Insurance Fund (36-8455-0-8-
701).
``(f) Optional Exemption of Defense and Homeland Security
Accounts.--
``(1) In general.--The President may, with respect to
any defense or homeland security account, exempt that
account from sequestration or provide for a lower
uniform percentage reduction than would otherwise
apply.
``(2) Limitation.--The President may not use the
authority provided by paragraph (1) unless the
President notifies the Congress of the manner in which
such authority will be exercised on or before the date
specified in section 254(a) for the budget year.''.
SEC. 203. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
(a) In General.--Section 256 of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as
follows:
``SEC. 256. EXCEPTIONS, LIMITATIONS, AND SPECIAL RULES.
``(a) National Wool Act and the Special Milk Program.--
Automatic spending increases are increases in outlays due to
changes in indexes in the following programs:
``(1) National Wool Act; and
``(2) Special milk program.
In those programs all amounts other than the automatic spending
increases shall be exempt from reduction under any
sequestration order.
``(b) The Guaranteed Student Loan Program.--(1) Any
reductions which are required to be achieved from the student
loan programs operated pursuant to part B of title IV of the
Higher Education Act of 1965 under any sequestration order
shall be achieved only from loans described in paragraphs (2)
and (3) by the application of the measures described in such
paragraphs.
``(2) For any loan made during the period beginning on the
date that a sequestration order takes effect with respect to a
fiscal year, the rate used in computing the special allowance
payment pursuant to section 438(b)(2)(A)(iii) of such Act for
each of the first four special allowance payments for such loan
shall be adjusted by reducing such rate by the lesser of--
``(A) 0.40 percent, or
``(B) the percentage by which the rate specified in
such section exceeds 3 percent.
``(3) For any loan made during the period beginning on the
date that a sequestration order takes effect with respect to a
fiscal year, the origination fee which is authorized to be
collected pursuant to section 438(c)(2) of such Act shall be
increased by 0.50 percent.
``(c) Foster Care and Adoption Assistance Programs.--Any
sequestration order shall make the reduction otherwise required
under the foster care and adoption assistance programs
(established by part E of title IV of the Social Security Act)
only with respect to payments and expenditures made by States
in which increases in foster care maintenance payment rates or
adoption assistance payment rates (or both) are to take effect
during the fiscal year involved, and only to the extent that
the required reduction can be accomplished by applying a
uniform percentage reduction to the Federal matching payments
that each such State would otherwise receive under section 474
of that Act (for such fiscal year) for that portion of the
State's payments attributable to the increases taking effect
during that year. No State's matching payments from the
Government for foster care maintenance payments or for adoption
assistance maintenance payments may be reduced by a percentage
exceeding the applicable domestic sequestration percentage. No
State may, after the date of the enactment of this Act, make
any change in the timetable for making payments under a State
plan approved under part E of title IV of the Social Security
Act which has the effect of changing the fiscal year in which
expenditures under such part are made.
``(d) Low-Income Programs.--(1) Benefit payments or payments
to States or other entities for the programs listed in
paragraph (2) shall not be reduced by more than 2 percent under
any sequestration order. When reduced under an end-of-session
sequestration order, those benefit reductions shall occur
starting with the payment made at the start of January. When
reduced under a within-session sequestration order, those
benefit reductions shall occur starting with the next periodic
payment.
``(2) The programs referred to in paragraph (1) are the
following:
``Child Nutrition (12-3539-0-1-605).
``Grants to States for Medicaid (75-0512-0-1-551).
``State Children's Health Insurance Fund (75-0515-0-
1-551).
``Supplemental Security Income Program (75-0406-0-1-
609).
``Temporary Assistance for Needy Families (75-1552-0-
1-609).
``Special supplemental nutrition program for women,
infants, and children (WIC) (12-3510-0-1-605).
``(e) Veterans' Medical Care.--The maximum permissible
reduction in budget authority for Veterans' medical care (36-
0160-0-1-703) for any fiscal year, pursuant to an order issued
under section 254, shall be 2 percent.
``(f) Federal Retirement Programs.--
``(1) For each of the programs listed in paragraph
(2) and except as provided in paragraph (3), monthly
(or other periodic) benefit payments shall be reduced
by the uniform percentage applicable to direct spending
sequestrations for such programs, which shall in no
case exceed 2 percent under any sequestration order.
When reduced under an end-of-session sequestration
order, those benefit reductions shall occur starting
with the payment made at the start of January or 7
weeks after the order is issued, whichever is later.
When reduced under a within-session sequestration
order, those benefit reductions shall occur starting
with the next periodic payment.
``(2) The programs subject to paragraph (1) are:
``Central Intelligence Agency Retirement and
Disability Fund (56-3400-0-1-054).
``Comptrollers General Retirement System (05-
0107-0-1-801)
``Judicial Officers' Retirement Fund (10-
8122-0-7-602).
``Claims Judges' Retirement Fund (10-8124-0-
7-602).
``Pensions for former Presidents (47-0105-0-
1-802).
``National Oceanic and Atmospheric
Administration Retirement (13-1450-0-1-306).
``Railroad Industry Pension Fund (60-8011-0-
7-601).
``Retired pay, Coast Guard (70-0602-0-1-403).
``Retirement pay and medical benefits for
commissioned officers, Public Health Service
(75-0379-0-1-551).
``Payments to Civil Service Retirement and
Disability Fund (24-0200-0-1-805).
``Payments to the Foreign Service Retirement
and Disability Fund (72-1036-0-1-153)
``Payments to Judiciary Trust Funds (10-0941-
0-1-752).
``(g) Veterans Programs.--To achieve the total percentage
reduction required by any order issued under this part, the
percentage reduction that shall apply to payments under the
following programs shall in no event exceed 2 percent:
``Canteen Service Revolving Fund (36-4014-0-3-705).
``Medical Center Research Organizations (36-4026-0-3-
703).
``Disability Compensation Benefits (36-0102-0-1-701).
``Education Benefits (36-0137-0-1-702).
``Vocational Rehabilitation and Employment Benefits
(36-0135-0-1-702).
``Pensions Benefits (36-0154-0-1-701).
``Burial Benefits (36-0139-0-1-701).
``Guaranteed Transitional Housing Loans For Homeless
Veterans Program Account (36-1119-0-1-704).
``Housing Direct Loan Financing Account (36-4127-0-1-
704).
``Housing Guaranteed Loan Financing Account (36-4129-
0-3-704).
``Vocational Rehabilitation and Education Direct Loan
Financing Account (36-4259-0-3-702).
``(h) Military Retirement.--To achieve the total percentage
reduction in military retirement required by any order issued
under this part, the percentage reduction that shall apply to
payments under the military retirement fund (97-8097-0-7-602)
and payments to the military retirement fund (97-0040-0-1-054)
shall in no event exceed 2 percent.
``(i) Federal Pay.--
``(1) In general.--For purposes of any order issued
under section 254, new budget authority to pay Federal
personnel shall be reduced by the applicable uniform
percentage, but no sequestration order may reduce or
have the effect of reducing the rate of pay to which
any individual is entitled under any statutory pay
system (as increased by any amount payable under
section 5304 of title 5, United States Code, or section
302 of the Federal Employees Pay Comparability Act of
1990) or the rate of any element of military pay to
which any individual is entitled under title 37, United
States Code, or any increase in rates of pay which is
scheduled to take effect under section 5303 of title 5,
United States Code, section 1009 of title 37, United
States Code, or any other provision of law.
``(2) Definitions.--For purposes of this subsection:
``(A) The term `statutory pay system' shall
have the meaning given that term in section
5302(1) of title 5, United States Code.
``(B) The term `elements of military pay'
means--
``(i) the elements of compensation of
members of the uniformed services
specified in section 1009 of title 37,
United States Code,
``(ii) allowances provided members of
the uniformed services under sections
403a and 405 of such title, and
``(iii) cadet pay and midshipman pay
under section 203(c) of such title.
``(C) The term `uniformed services' shall
have the meaning given that term in section
101(3) of title 37, United States Code.
``(j) Child Support Enforcement Program.--Any sequestration
order shall accomplish the full amount of any required
reduction in expenditures under sections 455 and 458 of the
Social Security Act by reducing the Federal matching rate for
State administrative costs under such program, as specified
(for the fiscal year involved) in section 455(a) of such Act,
to the extent necessary to reduce such expenditures by that
amount.
``(k) Extended Unemployment Compensation.--(1) A State may
reduce each weekly benefit payment made under the Federal-State
Extended Unemployment Compensation Act of 1970 for any week of
unemployment occurring during any period with respect to which
payments are reduced under an order issued under this title by
a percentage not to exceed the percentage by which the Federal
payment to the State under section 204 of such Act is to be
reduced for such week as a result of such order.
``(2) A reduction by a State in accordance with subparagraph
(A) shall not be considered as a failure to fulfill the
requirements of section 3304(a)(11) of the Internal Revenue
Code of 1954.
``(l) Commodity Credit Corporation.--
``(1) Powers and authorities of the commodity credit
corporation.--This title shall not restrict the
Commodity Credit Corporation in the discharge of its
authority and responsibility as a corporation to buy
and sell commodities in world trade, to use the
proceeds as a revolving fund to meet other obligations
and otherwise operate as a corporation, the purpose for
which it was created.
``(2) Reduction in payments made under contracts.--
(A) Payments and loan eligibility under any contract
entered into with a person by the Commodity Credit
Corporation prior to the time any sequestration order
has been issued shall not be reduced by an order
subsequently issued. Subject to subparagraph (B), after
any sequestration order is issued for a fiscal year,
any cash payments made by the Commodity Credit
Corporation--
``(i) under the terms of any one-year
contract entered into in or after such fiscal
year and after the issuance of the order; and
``(ii) out of an entitlement account,
to any person (including any producer, lender, or
guarantee entity) shall be subject to reduction under
the order.
``(B) Each contract entered into with producers or
producer cooperatives with respect to a particular crop
of a commodity and subject to reduction under
subparagraph (A) shall be reduced in accordance with
the same terms and conditions. If some, but not all,
contracts applicable to a crop of a commodity have been
entered into prior to the issuance of any sequestration
order, the order shall provide that the necessary
reduction in payments under contracts applicable to the
commodity be uniformly applied to all contracts for
succeeding crops of the commodity, under the authority
provided in paragraph (3).
``(3) Delayed reduction in outlays permissible.--
Notwithstanding any other provision of this title, if
any sequestration order is issued with respect to a
fiscal year, any reduction under the order applicable
to contracts described in paragraph (2) may provide for
reductions in outlays for the account involved to occur
in the fiscal years following the fiscal year to which
the order applies.
``(4) Uniform percentage rate of reduction and other
limitations.--All reductions described in paragraph (2)
that are required to be made in connection with any
sequestration order with respect to a fiscal year--
``(A) shall be made so as to ensure that
outlays for each program, project, activity, or
account involved are reduced by a percentage
rate that is uniform for all such programs,
projects, activities, and accounts, and may not
be made so as to achieve a percentage rate of
reduction in any such item exceeding the rate
specified in the order; and
``(B) with respect to commodity price support
and income protection programs, shall be made
in such manner and under such procedures as
will attempt to ensure that--
``(i) uncertainty as to the scope of
benefits under any such program is
minimized;
``(ii) any instability in market
prices for agricultural commodities
resulting from the reduction is
minimized; and
``(iii) normal production and
marketing relationships among
agricultural commodities (including
both contract and non-contract
commodities) are not distorted.
In meeting the criterion set out in clause
(iii) of subparagraph (B) of the preceding
sentence, the President shall take into
consideration that reductions under an order
may apply to programs for two or more
agricultural commodities that use the same type
of production or marketing resources or that
are alternative commodities among which a
producer could choose in making annual
production decisions.
``(5) Certain authority not to be limited.--Nothing
in this title shall limit or reduce in any way any
appropriation that provides the Commodity Credit
Corporation with funds to cover the Corporation's net
realized losses.
``(m) Postal Service Fund.--Notwithstanding any other
provision of law, any sequestration of the Postal Service Fund
shall be accomplished by a payment from that Fund to the
General Fund of the Treasury, and the Postmaster General of the
United States shall make the full amount of that payment during
the fiscal year to which the presidential sequestration order
applies.
``(n) Effects of Sequestration.--The effects of sequestration
shall be as follows:
``(1) Budgetary resources sequestered from any
account other than an entitlement trust, special, or
revolving fund account shall revert to the Treasury and
be permanently canceled.
``(2) Except as otherwise provided, the same
percentage sequestration shall apply to all programs,
projects, and activities within a budget account (with
programs, projects, and activities as delineated in the
appropriation Act or accompanying report for the
relevant fiscal year covering that account, or for
accounts not included in appropriation Acts, as
delineated in the most recently submitted President's
budget).
``(3) Administrative regulations or similar actions
implementing a sequestration shall be made within 120
days of the sequestration order. To the extent that
formula allocations differ at different levels of
budgetary resources within an account, program,
project, or activity, the sequestration shall be
interpreted as producing a lower total appropriation,
with that lower appropriation being obligated as though
it had been the pre-sequestration appropriation and no
sequestration had occurred.
``(4) Except as otherwise provided, obligations in
sequestered direct spending accounts shall be reduced
in the fiscal year in which a sequestration occurs and
in all succeeding fiscal years.
``(5) If an automatic spending increase is
sequestered, the increase (in the applicable index)
that was disregarded as a result of that sequestration
shall not be taken into account in any subsequent
fiscal year.
``(6) Except as otherwise provided, sequestration in
accounts for which obligations are indefinite shall be
taken in a manner to ensure that obligations in the
fiscal year of a sequestration and succeeding fiscal
years are reduced, from the level that would actually
have occurred, by the applicable sequestration
percentage.''.
(b) Conforming Amendment.--The table of contents set forth in
250(a) of the Balanced Budget and Emergency Deficit Control Act
of 1985 is amended by amending the item relating to section 256
to read as follows:
``Sec. 256. Exceptions, limitations, and special rules.''.
SEC. 204. POINT OF ORDER.
(a) Entitlement Point of Order.--Section 312 of the
Congressional Budget Act of 1974 is amended by adding at the
end the following new subsection:
``(g) Entitlement Point of Order.--It shall not be in order
in the House of Representatives or the Senate to consider any
bill, joint resolution, amendment, or conference report that--
``(1) increases aggregate level of direct spending
for any ensuing fiscal year or
``(2) includes any provision that has the effect of
modifying the application of section 252A of the
Balanced Budget and Emergency Deficit Control Act of
1985 to any entitlement program subject to
sequestration or exempt from sequestration under such
Act.''.
SEC. 205. TECHNICAL AND CONFORMING AMENDMENTS.
The Balanced Budget and Emergency Deficit Control Act of 1985
is amended as follows:
(1) Section 251(a)(1) is amended by inserting ``,
section 252A,'' after ``section 252''.
(2) Section 254(c)(4)(B) is amended by inserting ``or
section 252A'' after ``section 252''.
(3) Section 254(c) is amended by redesignating
paragraph (5) as paragraph (6) and by inserting after
paragraph (4) the following new paragraph:
``(5) Direct spending control sequestration
reports.--The preview reports shall set forth, for the
current year and the budget year, estimates for each of
the following:
``(A) The total level of direct spending for
all programs, projects, and activities
(excluding social security).
``(B) The sequestration percentage or (if the
required sequestration percentage is greater
than the maximum allowable percentage for
medicare) percentages necessary to comply with
section 252A.''.
(4) Section 254(f) is amended by redesignating
paragraphs (4) and (5) as paragraphs (5) and (6) and by
inserting after paragraph (3) the following new
paragraph:
``(4) Direct spending control sequestration
reports.--The final reports shall contain all the
information required in the direct spending control
sequestration preview reports. In addition, these
reports shall contain, for the budget year, for each
account to be sequestered, estimates of the baseline
level of sequesterable budgetary resources and
resulting outlays and the amount of budgetary resources
to be sequestered and resulting outlay reductions. The
reports shall also contain estimates of the effects on
outlays of the sequestration in each outyear for direct
spending programs.''.
(5) Section 258C(a)(1) is amended by inserting ``,
252A,'' after ``section 252''.
Subtitle B--Discretionary Spending Limits
SEC. 211. ENFORCING DISCRETIONARY SPENDING LIMITS.
(a) Discretionary Spending Limits.--Sections 251(b) and (c)
of the Balanced Budget and Emergency Deficit Control of Act of
1985 are amended to read as follows:
``(b) Discretionary Spending Limit.--As used in this part,
the term `discretionary spending limit' means with respect to
fiscal year 2005: $818,736,000,000 in new budget authority and
$901,816,000,000 in outlays.''.
(b) Discretionary Spending Limit Point of Order.--Section 312
of the Congressional Budget Act of 1974 (as amended by section
204(a)) is further amended by adding at the end the following
new subsection:
``(h) Discretionary Spending Limit Point of Order.--It shall
not be in order in the House of Representatives or the Senate
to consider any bill, joint resolution, amendment, or
conference report that--
``(1) increases the discretionary spending limits for
any ensuing fiscal year after the budget year; or
``(2) would cause the discretionary spending limits
for the budget year to be breached.''.
SEC. 212. ANNUAL JOINT RESOLUTION ESTABLISHING DISCRETIONARY SPENDING
LIMITS.
(a) In General.--Title III of the Congressional Budget Act of
1974 is amended by adding at the end the following new section:
``ANNUAL JOINT RESOLUTION ESTABLISHING DISCRETIONARY SPENDING LIMITS
``Sec. 317. (a) Introduction.--Before the close of the second
legislative day of the House of Representatives after the date
of House passage of a concurrent resolution on the budget, the
chairman of the Committee on the Budget of the House shall
introduce a joint resolution that amends section 251(b) of the
Balanced Budget and Emergency Deficit Control of Act of 1985 to
establish a discretionary spending limit for the fiscal year of
the concurrent resolution.
``(b) Expedited Consideration.--For purposes of the
consideration of a joint resolution introduced pursuant to
subsection (a), the provisions of subsections (c) and (d) of
section 1013 (other than subsection (c)(1)(A)) shall be applied
by substituting `joint resolution' and `Committee on the
Budget' for `bill' and `Committee on Appropriations',
respectively.''.
(b) Conforming Amendment.--The table of contents set forth in
section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended by inserting after the item
relating to section 316 the following new item:
``Sec. 317. Annual joint resolution establishing discretionary spending
limits.''.
TITLE III--COMBATING WASTE, FRAUD, AND ABUSE.
Subtitle A--Enhanced Rescissions of Budget Authority Identified by the
President as Wasteful Spending
SEC. 301. ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS.
(a) In General.--Part B of title X of the Congressional
Budget and Impoundment Control Act of 1974 (2 U.S.C. 681 et
seq.) is amended by redesignating sections 1013 through 1017 as
sections 1014 through 1018, respectively, and by inserting
after section 1012 the following new section:
``ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS
``Sec. 1013. (a) Proposed Rescission of Budget Authority
Identified as Wasteful Spending.--The President may propose, at
the time and in the manner provided in subsection (b), the
rescission of any budget authority provided in an appropriation
Act that he identifies as wasteful spending. If the President
proposes a rescission of budget authority, he may also propose
to reduce the appropriate discretionary spending limits for new
budget authority and outlays flowing therefrom set forth in
section 251(b) of the Balanced Budget and Emergency Deficit
Control Act of 1985 by an amount that does not exceed the
amount of the proposed rescission. Funds made available for
obligation under this procedure may not be proposed for
rescission again under this section.
``(b) Transmittal of Special Message.--
``(1) The President may transmit to Congress a
special message proposing to rescind amounts of budget
authority and include with that special message a draft
bill that, if enacted, would only rescind that budget
authority unless the President also proposes a
reduction in the appropriate discretionary spending
limits set forth in section 251(b) of the Balanced
Budget and Emergency Deficit Control Act of 1985. That
bill shall clearly identify the amount of budget
authority that is proposed to be rescinded for each
program, project, or activity to which that budget
authority relates.
``(2) In the case of an appropriation Act that
includes accounts within the jurisdiction of more than
one subcommittee of the Committee on Appropriations,
the President in proposing to rescind budget authority
under this section shall send a separate special
message and accompanying draft bill for accounts within
the jurisdiction of each subcommittee.
``(3) Each special message shall specify, with
respect to the budget authority proposed to be
rescinded, the following:
``(A) The amount of budget authority which he
proposes to be rescinded.
``(B) Any account, department, or
establishment of the Government to which such
budget authority is available for obligation,
and the specific project or governmental
functions involved.
``(C) The reasons why the budget authority
should be rescinded, including why he considers
it to be wasteful spending.
``(D) To the maximum extent practicable, the
estimated fiscal, economic, and budgetary
effect (including the effect on outlays and
receipts in each fiscal year) of the proposed
rescission.
``(E) All facts, circumstances, and
considerations relating to or bearing upon the
proposed rescission and the decision to effect
the proposed rescission, and to the maximum
extent practicable, the estimated effect of the
proposed rescission upon the objects, purposes,
and programs for which the budget authority is
provided.
``(F) A reduction in the appropriate
discretionary spending limits set forth in
section 251(b) of the Balanced Budget and
Emergency Deficit Control Act of 1985, if
proposed by the President.
``(c) Procedures for Expedited Consideration.--
``(1)(A) Before the close of the second legislative
day of the House of Representatives after the date of
receipt of a special message transmitted to Congress
under subsection (b), the majority leader or minority
leader of the House of Representatives shall introduce
(by request) the draft bill accompanying that special
message. If the bill is not introduced as provided in
the preceding sentence, then, on the third legislative
day of the House of Representatives after the date of
receipt of that special message, any Member of that
House may introduce the bill.
``(B) The bill shall be referred to the Committee on
Appropriations. The bill shall be reported not later
than the seventh legislative day of that House after
the date of receipt of that special message. If that
committee fails to report the bill within that period,
that committee shall be automatically discharged from
consideration of the bill, and the bill shall be placed
on the appropriate calendar.
``(C) A vote on final passage of the bill shall be
taken in the House of Representatives on or before the
close of the 10th legislative day of that House after
the date of the introduction of the bill in that House.
If the bill is passed, the Clerk of the House of
Representatives shall cause the bill to be engrossed,
certified, and transmitted to the Senate within one
calendar day of the day on which the bill is passed.
``(2)(A) A motion in the House of Representatives to
proceed to the consideration of a bill under this
section shall be highly privileged and not debatable.
An amendment to the motion shall not be in order, nor
shall it be in order to move to reconsider the vote by
which the motion is agreed to or disagreed to.
``(B) Debate in the House of Representatives on a
bill under this section shall not exceed 4 hours, which
shall be divided equally between those favoring and
those opposing the bill. A motion to further limit
debate shall not be debatable. It shall not be in order
to move to recommit a bill under this section or to
move to reconsider the vote by which the bill is agreed
to or disagreed to.
``(C) Appeals from decisions of the Chair relating to
the application of the Rules of the House of
Representatives to the procedure relating to a bill
under this section shall be decided without debate.
``(D) Except to the extent specifically provided in
the preceding provisions of this subsection,
consideration of a bill under this section shall be
governed by the Rules of the House of Representatives.
It shall not be in order in the House of
Representatives to consider any rescission bill
introduced pursuant to the provisions of this section
under a suspension of the rules or under a special
rule.
``(3) A bill transmitted to the Senate pursuant to
paragraph (1)(D) shall be referred to its Committee on
Appropriations. That committee shall report the bill
without substantive revision and with or without
recommendation. The bill shall be reported not later
than the seventh legislative day of the Senate after it
receives the bill. A committee failing to report the
bill within such period shall be automatically
discharged from consideration of the bill, and the bill
shall be placed upon the appropriate calendar.
``(4)(A) A motion in the Senate to proceed to the
consideration of a bill under this section shall be
privileged and not debatable. An amendment to the
motion shall not be in order, nor shall it be in order
to move to reconsider the vote by which the motion is
agreed to or disagreed to.
``(B) Debate in the Senate on a bill under this
section, and all debatable motions and appeals in
connection therewith (including debate pursuant to
subparagraph (C)), shall not exceed 10 hours. The time
shall be equally divided between, and controlled by,
the majority leader and the minority leader or their
designees.
``(C) Debate in the Senate or any debatable motion or
appeal in connection with a bill under this section
shall be limited to not more than 1 hour, to be equally
divided between, and controlled by, the mover and the
manager of the bill, except that in the event the
manager of the bill is in favor of any such motion or
appeal, the time in opposition thereto, shall be
controlled by the minority leader or his designee. Such
leaders, or either of them, may, from time under their
control of the passage of a bill, allot additional time
to any Senator during the consideration of any
debatable motion or appeal.
``(D) A motion in the Senate to further limit debate
on a bill under this section is not debatable. A motion
to recommit a bill under this section is not in order.
``(d) Amendment and Divisions Prohibited.--No amendment to a
bill considered under this section shall be in order in either
the House of Representatives or the Senate. It shall not be in
order to demand a division of the question in the House of
Representatives (or in a Committee of the Whole) or in the
Senate. No motion to suspend the application of this subsection
shall be in order in either House, nor shall it be in order in
either House to suspend the application of this subsection by
unanimous consent.
``(e) Requirement To Make Available for Obligation.--Any
amount of budget authority proposed to be rescinded in a
special message transmitted to Congress under subsection (b)
shall be made available for obligation on the day after the
date on which either House rejects the bill transmitted with
that special message.
``(f) Definitions.--For purposes of this section:
``(1) The term `appropriation Act' means any general
or special appropriation Act, and any Act or joint
resolution making supplemental, deficiency, or
continuing appropriations.
``(2) The term `legislative day' means, with respect
to either House of Congress, any day of session.
``(3) The term `rescind' means, with respect to an
appropriation Act, to reduce the amount of budget
authority appropriated in that Act, and reducing budget
authority shall include reducing obligation limitations
set forth in that Act.''.
(b) Exercise of Rulemaking Powers.--Section 904 of the
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is
amended--
(1) in subsection (a), by striking ``and 1017'' and
inserting ``1012, and 1017''; and
(2) in subsection (d), by striking ``section 1017''
and inserting ``sections 1012 and 1017''.
(c) Conforming Amendments.--
(1) Section 1011 of the Congressional Budget Act of
1974 (2 U.S.C. 682(5)) is amended by repealing
paragraphs (3) and (5) and by redesignating paragraph
(4) as paragraph (3).
(2) Section 1014 of such Act (2 U.S.C. 685) is
amended--
(A) in subsection (b)(1), by striking ``or
the reservation''; and
(B) in subsection (e)(1), by striking ``or a
reservation'' and by striking ``or each such
reservation''.
(3) Section 1015(a) of such Act (2 U.S.C. 686) is
amended by striking ``is to establish a reserve or'',
by striking ``the establishment of such a reserve or'',
and by striking ``reserve or'' each other place it
appears.
(4) Section 1017 of such Act (2 U.S.C. 687) is
amended--
(A) in subsection (a), by striking
``rescission bill introduced with respect to a
special message or'';
(B) in subsection (b)(1), by striking
``rescission bill or'', by striking ``bill or''
the second place it appears, by striking
``rescission bill with respect to the same
special message or'', and by striking ``, and
the case may be,'';
(C) in subsection (b)(2), by striking ``bill
or'' each place it appears;
(D) in subsection (c), by striking
``rescission'' each place it appears and by
striking ``bill or'' each place it appears;
(E) in subsection (d)(1), by striking
``rescission bill or'' and by striking ``, and
all amendments thereto (in the case of a
rescission bill)'';
(F) in subsection (d)(2)--
(i) by striking the first sentence;
(ii) by amending the second sentence
to read as follows: ``Debate on any
debatable motion or appeal in
connection with an impoundment
resolution shall be limited to 1 hour,
to be equally divided between, and
controlled by, the mover and the
manager of the resolution, except that
in the event that the manager of the
resolution is in favor of any such
motion or appeal, the time in
opposition thereto shall be controlled
by the minority leader or his
designee.'';
(iii) by striking the third sentence;
and
(iv) in the fourth sentence, by
striking ``rescission bill or'' and by
striking ``amendment, debatable
motion,'' and by inserting `debatable
motion';
(G) in paragraph (d)(3), by striking the
second and third sentences; and
(H) by striking paragraphs (4), (5), (6), and
(7) of paragraph (d).
(d) Clerical Amendments.--The table of sections for subpart B
of title X of the Congressional Budget and Impoundment Control
Act of 1974 is amended by redesignating the item relating to
sections 1014 through 1018 as items 1015 through 1019,
respectively, and by inserting after the item relating to
section 1012 the following new item:
``Sec. 1013. Enhanced consideration of certain proposed rescissions.''.
Subtitle B--Commission to Eliminate Waste, Fraud, and Abuse
SEC. 311. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established the Commission to
Eliminate Waste, Fraud, and Abuse (hereafter in this subtitle
referred to as the ``Commission'').
(b) Membership.--
(1) In general.--The Commission shall consist of 12
members, all of whom shall be appointed by the
President not later than 90 days after the date of
enactment of this Act.
(2) Chairperson and vice chairperson.--The President
shall designate a chairperson and vice chairperson from
among the members of the Commission.
(c) Period of Appointment; Vacancies.--Members shall be
appointed for the life of the Commission. Any vacancy in the
Commission shall not affect its powers, but shall be filled in
the same manner as the original appointment.
(d) Meetings.--
(1) Initial meeting.--Not later than 30 days after
the date on which all members of the Commission have
been appointed, the Commission shall hold its first
meeting.
(2) Subsequent meetings.--The Commission shall meet
at the call of the chairperson.
(e) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
SEC. 312. DUTIES OF THE COMMISSION.
(a) Definitions.--In this section, the following definitions
shall apply:
(1) Agency.--The term ``agency'' has the meaning
given the term ``Executive agency'' under section 105
of title 5, United States Code.
(2) Program.--The term ``program'' means any activity
or function of an agency.
(b) In General.--The Commission shall--
(1) evaluate all agencies and programs within those
agencies, using the criteria under subsection (c); and
(2) submit to Congress a plan with recommendations of
the agencies and programs that should be realigned or
eliminated.
(c) Criteria.--
(1) Duplicative.--If 2 or more agencies or programs
are performing the same essential function and the
function can be consolidated or streamlined into a
single agency or program, the Commission shall
recommend that the agency or program be realigned.
(2) Wasteful or inefficient.--The Commission shall
recommend the realignment or elimination of any agency
or program that has wasted Federal funds by--
(A) egregious spending;
(B) mismanagement of resources and personnel;
or
(C) use of such funds for personal benefit or
the benefit of a special interest group.
(3) Outdated, irrelevant, or failed.--The Commission
shall recommend the elimination of any agency or
program that--
(A) has completed its intended purpose;
(B) has become irrelevant; or
(C) has failed to meet its objectives.
(d) Systematic Assessment of Programs.--
(1) In general.--Not later than 1 year after the date
of enactment of this Act, the President shall--
(A) establish a systematic method for
assessing the effectiveness and accountability
of agency programs; and
(B) submit, to the Commission, assessments of
not less than \1/2\ of all programs covered
under subsection (b)(1) that use the method
established under subparagraph (A).
(2) Method objectives.--The method established under
paragraph (1) shall--
(A) recognize different types of federal
programs;
(B) assess programs based primarily on the
achievement of performance goals (as defined
under section 1115(f)(4) of title 31, United
States Code); and
(C) assess programs based in part on the
adequacy of the program's performance measures,
financial management, and other factors
determined by the President.
(3) Development.--The method established under
paragraph (1) shall not be implemented until it has
been reviewed and accepted by the Commission.
(4) Consideration of assessments.--The Commission
shall consider assessments submitted under this
subsection when evaluating programs under subsection
(b)(1).
(e) Common Performance Measures.--Not later than 1 year after
the date of enactment of this Act, the President shall identify
common performance measures for programs covered in subsection
(b)(1) that have similar functions and, to the extent feasible,
provide the Commission with data on such performance measures.
(f) Report.--Not later than 2 years after the date of
enactment of this Act, the Commission shall submit to the
President and Congress a report that includes the plan
described under subsection (b)(2), with supporting
documentation for all recommendations.
SEC. 313. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission or, at its direction, any
subcommittee or member of the Commission, may, for the purpose
of carrying out this subtitle--
(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and
administer such oaths as any member of the Commission
considers advisable;
(2) require, by subpoena or otherwise, the attendance
and testimony of such witnesses as any member of the
Commission considers advisable; and
(3) require, by subpoena or otherwise, the production
of such books, records, correspondence, memoranda,
papers, documents, tapes, and other evidentiary
materials relating to any matter under investigation by
the Commission.
(b) Subpoenas.--
(1) Issuance.--Subpoenas issued under subsection (a)
shall bear the signature of the chairperson of the
Commission and shall be served by any person or class
of persons designated by the chairperson for that
purpose.
(2) Enforcement.--In the case of contumacy or failure
to obey a subpoena issued under subsection (a), the
United States district court for the judicial district
in which the subpoenaed person resides, is served, or
may be found, may issue an order requiring such person
to appear at any designated place to testify or to
produce documentary or other evidence. Any failure to
obey the order of the court may be punished by the
court as a contempt of that court.
(c) Information From Federal Agencies.--The Commission may
secure directly from any Federal department or agency such
information as the Commission considers necessary to carry out
this Act. Upon request of the chairperson of the Commission,
the head of such department or agency shall furnish such
information to the Commission.
(d) Postal Services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Government.
(e) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property.
SEC. 314. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--
(1) Non-federal members.--Except as provided under
subsection (b), each member of the Commission who is
not an officer or employee of the Government shall not
be compensated.
(2) Federal officers or employees.--All members of
the Commission who are officers or employees of the
United States shall serve without compensation in
addition to that received for their services as
officers or employees of the United States.
(b) Travel Expenses.--The members of the Commission shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the Commission.
(c) Staff.--
(1) In general.--The chairperson of the Commission
may, without regard to the civil service laws and
regulations, appoint and terminate an executive
director and such other additional personnel as may be
necessary to enable the Commission to perform its
duties. The employment of an executive director shall
be subject to confirmation by the Commission.
(2) Compensation.--Upon the approval of the
chairperson, the executive director may fix the
compensation of the executive director and other
personnel without regard to chapter 51 and subchapter
III of chapter 53 of title 5, United States Code,
relating to classification of positions and General
Schedule pay rates, except that the rate of pay for the
executive director and other personnel may not exceed
the maximum rate payable for a position at GS-15 of the
General Schedule under section 5332 of such title.
(3) Personnel as federal employees.--
(A) In general.--The executive director and
any personnel of the Commission who are
employees shall be employees under section 2105
of title 5, United States Code, for purposes of
chapters 63, 81, 83, 84, 85, 87, 89, and 90 of
that title.
(B) Members of commission.--Subparagraph (A)
shall not be construed to apply to members of
the Commission.
(d) Detail of Government Employees.--Any Government employee
may be detailed to the Commission without reimbursement, and
such detail shall be without interruption or loss of civil
service status or privilege.
(e) Procurement of Temporary and Intermittent Services.--The
chairperson of the Commission may procure temporary and
intermittent services under section 3109(b) of title 5, United
States Code, at rates for individuals which do not exceed the
daily equivalent of the annual rate of basic pay prescribed for
level V of the Executive Schedule under section 5316 of such
title.
SEC. 315. TERMINATION OF THE COMMISSION.
The Commission shall terminate 90 days after the date on
which the Commission submits its report.
SEC. 316. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be
necessary for carrying out this subtitle for each of the fiscal
years 2006 through 2008.
TITLE IV--TRUTH IN ACCOUNTING
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees and Uniformed Services Personnel
SEC. 401. CIVIL SERVICE RETIREMENT SYSTEM.
(a) Civil Service Retirement and Disability Fund.--Chapter 83
of title 5, United States Code, is amended--
(1) in section 8331--
(A) in paragraph (17)--
(i) by striking ``normal cost'' and
inserting ``normal cost percentage'';
and
(ii) by inserting ``and standards
(using dynamic assumptions)'' after
``practice'';
(B) by amending paragraph (18) to read as
follows:
``(18) `Fund balance' means the current net assets of
the Fund available for payment of benefits, as
determined by the Office in accordance with appropriate
accounting standards, but does not include any amount
attributable to--
``(A) the Federal Employees' Retirement
System; or
``(B) contributions made under the Federal
Employees' Retirement Contribution Temporary
Adjustment Act of 1983 by or on behalf of any
individual who became subject to the Federal
Employees' Retirement System;''
(C) by amending paragraph (19) to read as
follows:
``(19) `accrued liability' means the estimated excess
of the present value of all benefits payable from the
Fund to employees and Members, and former employees and
Members, subject to this subchapter, and their
survivors, over the present value of deductions to be
withheld from the future basic pay of employees and
Members currently subject to this subchapter and of
future agency contributions to be made in their
behalf;''
(D) in paragraph (27) by striking ``and'' at
the end;
(E) in paragraph (28) by striking the period
at the end and inserting a semicolon; and
(F) by adding at the end the following
paragraphs:
``(29) `dynamic assumptions' means economic
assumptions that are used in determining actuarial
costs and liabilities of a retirement system and in
anticipating the effects of long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation; and
``(30) `unfunded liability' means the estimated
excess of--
``(A) the actuarial present value of all
future benefits payable from the Fund under
this subchapter based on the service of current
or former employees or Members, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the
future basic pay of employees and
Members currently subject to this
chapter pursuant to section 8334;
``(ii) the actuarial present value of
the future contributions to be made
pursuant to section 8334 with respect
to employees and Members currently
subject to this subchapter;
``(iii) the Fund balance, as defined
in paragraph (18), as of the date the
unfunded liability is determined; and
``(iv) any other appropriate amount,
as determined by the Office of
Personnel Management in accordance with
generally accepted actuarial practices
and principles.'';
(2) in section 8334--
(A) in subsection (a)(1)--
(i) by striking the last two
sentences;
(ii) by redesignating that
subsection, as so amended, as
(a)(1)(A); and
(iii) by adding at the end the
following new subparagraphs:
``(B) Except as provided in subparagraph (E), each employing
agency having any employees or Members subject to subparagraph
(A) shall contribute from amounts available for salaries and
expenses an amount equal to the sum of--
``(i) the product of--
``(I) the normal cost percentage, as
determined for employees (other than employees
covered by clause (ii)), multiplied by
``(II) the aggregate amount of basic pay
payable by the agency, for the period involved,
to employees (under subclause (I)) who are
within such agency; and
``(ii) the product of--
``(I) the normal cost percentage, as
determined for Members, Congressional
employees, law enforcement officers,
firefighters, air traffic controllers,
bankruptcy judges, Court of Federal Claims
judges, United States magistrates, judges of
the United States Court of Appeals for the
Armed Forces, members of the Capitol Police,
nuclear materials couriers, and members of the
Supreme Court Police, multiplied by
``(II) the aggregate amount of basic pay
payable by the agency for the period involved,
to employees and Members (under subclause (I))
who are within such agency.
``(C) In determining the normal cost percentage to be applied
under subparagraph (B), amounts provided for under subparagraph
(A) shall be taken into account.
``(D) Contributions under this paragraph shall be paid--
``(i) in the case of law enforcement officers,
firefighters, air traffic controllers, bankruptcy
judges, Court of Federal Claims judges, United States
magistrates, judges of the United States Court of
Appeals for the Armed Forces, members of the Supreme
Court Police, nuclear materials couriers and other
employees, from the appropriations or fund used to pay
such law enforcement officers, firefighters, air
traffic controllers, bankruptcy judges, Court of
Federal Claims judges, United States magistrates,
judges of the United States Court of Appeals for the
Armed Forces, members of the Supreme Court Police,
nuclear materials couriers and other employees,
respectively;
``(ii) in the case of elected officials, from an
appropriation or fund available for payment of other
salaries of the same office or establishment; and
``(iii) in the case of employees of the legislative
branch paid by the Clerk of the House of
Representatives, from the contingent fund of the House.
``(E) In the case of the United States Postal Service, the
Metropolitan Washington Airports Authority, and the government
of the District of Columbia, an amount equal to that withheld
under subparagraph (A) shall be contributed from the
appropriation or fund used to pay the employee.''; and
(B) in subsection (k)--
(i) in paragraph (1)--
(I) in subparagraph (A) by
striking ``the first sentence
of subsection (a)(1) of this
section'' and inserting
``subsection (a)(1)(A)''; and
(II) by amending subparagraph
(B) to read as follows:
``(B) the amount of the contribution under subsection
(a)(1)(B) shall be the amount which would have been
contributed under such subsection if this subsection
had not been enacted.''; and
(ii) in paragraph (2)(C)(iii) by
striking ``the first sentence of
subsection (a)(1)'' and inserting
``subsection (a)(1)(A)''; and
(3) in section 8348--
(A) by repealing subsection (f);
(B) by amending subsection (g) to read as
follows:
``(g)(1)(A) Not later than June 30, 2005, the Office of the
Actuary shall determine the unfunded liability of the Fund, as
of September 30, 2004, attributable to benefits payable under
this chapter and make recommendations regarding its
liquidation. After considering such recommendations, the Office
shall establish an amortization schedule, including a series of
annual installments commencing October 1, 2005, which provides
for the liquidation of such liability by October 1, 2044.
``(B) The Office shall redetermine the unfunded liability of
the Fund as of the close of the fiscal year, for each fiscal
year beginning after September 30, 2004, through the fiscal
year ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(C) The Office shall redetermine the unfunded liability of
the Fund as of the close of the fiscal year for each fiscal
year beginning after September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability over five years.
``(D) Amortization schedules established under this paragraph
shall be set in accordance with generally accepted actuarial
practices and principles, with interest computed at the rate
used in the most recent valuation of the Civil Service
Retirement System.
``(2) At the beginning of each fiscal year, beginning on
October 1, 2005, the Office shall notify the Secretary of the
Treasury of the amount of the first installment under the most
recent amortization schedule established under paragraph (1).
The Secretary shall credit that amount to the Fund, as a
Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated.
``(3) For the purpose of carrying out paragraph (1) with
respect to any fiscal year, the Office may--
``(A) require the Board of Actuaries of the Civil
Service Retirement System to make actuarial
determinations and valuations, make recommendations,
and maintain records in accordance with section
8347(f); and
``(B) use the latest actuarial determinations and
valuations made by such Board of Actuaries.'';
(C) in subsections (h), (i), and (m) by
striking ``unfunded'' and inserting ``accrued''
each place it appears; and
(D) by adding at the end the following new
subsection:
``(n) Under regulations prescribed by the Office, the head of
an agency may request reconsideration of any amount determined
to be payable with respect to such agency under section
8334(a)(1)(B)-(D). Any such request shall be referred to the
Board of Actuaries of the Civil Service Retirement System. The
Board of Actuaries shall review the computations of the Office
and may make any adjustment with respect to any such amount
which the Board determines appropriate. A determination by the
Board of Actuaries under this subsection shall be final.''.
(b) Government Contributions.--Section 8423 of title 5,
United States Code, is amended--
(1) in subsection (a)(2) by striking ``section 8422''
and inserting ``section 8422(a)''; and
(2) in subsection (b)(2) by striking ``equal annual
installments'' and inserting ``annual installments set
in accordance with generally accepted actuarial
practices and principles''.
SEC. 402. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM.
(a) Section 101 of the Central Intelligence Agency Retirement
Act (50 U.S.C. 2001) is amended--
(1) in paragraph (5), to read as follows:
``(5) Unfunded liability.--The term `unfunded
liability' means the estimated excess of--
``(A) the actuarial present value of all
future benefits payable from the Fund under
title II of this Act based on the service of
current or former participants, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the
future basic pay of participants
currently subject to title II of this
Act pursuant to section 211;
``(ii) the actuarial present value of
the future contributions to be made
pursuant to section 211 with respect to
participants currently subject to title
II of this Act;
``(iii) the Fund balance, as defined
in paragraph (4), as of the date the
unfunded liability is determined; and
``(iv) any other appropriate amount,
as determined by the Director in
accordance with generally accepted
actuarial practices and principles.'';
(2) in paragraph (6)--
(A) by striking `` `normal cost' '' and
inserting `` `normal cost percentage' ''; and
(B) by inserting ``and standards (using
dynamic assumptions)'' after ``practice''; and
(3) by adding at the end the following paragraph:
``(10) Dynamic assumptions.--The term `dynamic
assumptions' means economic assumptions that are used
in determining actuarial costs and liabilities of a
retirement system and in anticipating the effects of
long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.''.
(b) Section 202 of such Act (50 U.S.C. 2012) is amended by
adding at the end the following: ``The Fund is appropriated for
the payment of benefits as provided by this title.''.
(c) Section 211(a)(2) of such Act (50 U.S.C. 2021(a)(2)) is
amended to read as follows:
``(2) Agency contributions.--The Agency shall
contribute to the Fund the amount computed in a manner
similar to that used under section 8334(a) of title 5,
United States Code, pursuant to determinations of the
normal cost percentage of the Central Intelligence
Agency Retirement and Disability System by the
Director. Contributions under this paragraph shall be
paid from amounts available for salaries and
expenses.''.
(d) Section 261 of such Act (50 U.S.C. 2091) is amended--
(1) by striking subsections (c), (d), and (e); and
(2) by inserting after subsection (b) the following
new subsections:
``(c)(1) Not later than June 30, 2005, the Director shall
cause to be made actuarial valuations of the Fund that
determine the unfunded liability of the Fund, as of September
30, 2004, attributable to benefits payable under this title and
make recommendations regarding its liquidation. After
considering such recommendations, the Director shall establish
an amortization schedule, including a series of annual
installments commencing October 1, 2005, which provides for the
liquidation of such liability by October 1, 2044.
``(2) The Director shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each fiscal
year beginning after September 30, 2004, through the fiscal
year ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Director shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each fiscal
year beginning after September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability over five years.
``(4) Amortization schedules established under this
subsection shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Civil Service
Retirement and Disability System.
``(d) At the beginning of each fiscal year, beginning on
October 1, 2005, the Director shall notify the Secretary of the
Treasury of the amount of the first installment under the most
recent amortization schedule established under subsection (c).
The Secretary shall credit that amount to the Fund, as a
Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated. For the purposes
of Section 504 of the National Security Act of 1947, this
amount shall be considered authorized.''.
(e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) is
amended by adding at the end the following new section:
``SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EMPLOYEES DESIGNATED
UNDER SECTION 302.
``(a) In addition to other government contributions required
by law, the Agency shall contribute to the Civil Service
Retirement and Disability fund (hereinafter in this section
referred to as the `Fund') amounts calculated in accordance
with section 8423 of title 5, United States Code, based on the
projected number of employees to be designated pursuant to
section 302 of this Act. In addition, the Agency, in a manner
similar to that established for employee contributions to the
Fund by section 8422 of title 5, United States Code, will
contribute an amount equal to the difference between that which
would be contributed by the number of employees projected to be
designated under section 302 and the amounts that are actually
being deducted and contributed from the basic pay of an equal
number of employees pursuant to section 8422. The amounts of
the Agency's contributions under this subsection shall be
determined by the Director of the Office of Personnel
Management, in consultation with the Director, and shall be
paid by the Agency from funds available for salaries and
expenses. Agency employees designated pursuant to section 302
of this Act shall, commencing with such designation, have
deducted from their basic pay the full amount required by
section 8422 of title 5, United States Code, and such
deductions shall be contributed to the Fund.
``(b)(1) The Director of the Office of Personnel Management,
in consultation with the Director, shall determine the total
amount of unpaid contributions (government and employee
contributions) and interest attributable to the number of
individuals employed with the Agency on September 30, 2005, who
are projected to be designated under section 302 of this Act,
but are not yet designated under that section as of that date.
The amount shall be referred to as the section 302 unfunded
liability.
``(2) Not later than June 30, 2006, the Director of the
Office of Personnel Management, in consultation with the
Director, shall establish an amortization schedule, setting
forth a series of annual installments commencing September 30,
2006, which provides for the liquidation of the section 302
unfunded liability by September 30, 2013.
``(3) At the end of each fiscal year, beginning on September
30, 2006, the Director shall notify the Secretary of the
Treasury of the amount of the annual installment under the
amortization schedule established under paragraph (2) of this
subsection. Before closing the accounts for that fiscal year,
the Secretary shall credit that amount to the Fund, out of any
money in the Treasury of the United States not otherwise
appropriated.
``(c) Amounts paid by the Agency pursuant to this section are
deemed to be specifically authorized by the Congress for the
purposes of section 504 of the National Security Act of
1947.''.
(2) The table of contents of such Act is amended by inserting
after the item relating to section 307 the following new item:
``Sec. 308. Full funding of retiree costs for employees designated under
section 302.''.
SEC. 403. FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM.
Chapter 8 of title I of the Foreign Service Act of 1980,
Public Law 96-465 (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as
amended, is further amended--
(1) in section 804 (22 U.S.C. 4044)--
(A) by amending paragraph (5) to read as
follows:
``(5) `normal cost percentage' means the entry-age
normal cost computed in accordance with generally
accepted actuarial practice and standards (using
dynamic assumptions) and expressed as a level
percentage of aggregate basic pay;'';
(B) by amending paragraph (14) to read as
follows:
``(14) `unfunded liability' means the estimated
excess of--
``(A) the actuarial present value of all
future benefits payable from the Fund under
this part based on the service of current or
former participants, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the
future basic pay of participants
currently subject to this part pursuant
to section 805;
``(ii) the actuarial present value of
the future contributions to be made
pursuant to section 805 with respect to
participants currently subject to this
part;
``(iii) the Fund balance, as defined
in paragraph (7), as of the date the
unfunded liability is determined,
excluding any amount attributable to
the Foreign Service Pension System, or
contributions made under the Federal
Employees' Retirement Contribution
Temporary Adjustment Act of 1983 by or
on behalf of any individual who became
subject to the Foreign Service Pension
System; and
``(iv) any other appropriate amount,
as determined by the Secretary of the
Treasury in accordance with generally
accepted actuarial practices and
principles.''; and
(C)(i) by striking the period at the end of
paragraph (15) and inserting ``; and''; and
(ii) by adding at the end the following new
paragraph:
``(16) `dynamic assumptions' means economic
assumptions that are used in determining actuarial
costs and liabilities of a retirement system and in
anticipating the effects of long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(2) in section 852 (22 U.S.C. 4071a)--
(A) in paragraph (4)--
(i) by striking ``normal cost'' and
inserting ``normal cost percentage'';
and
(ii) by striking ``by the Secretary
of State'';
(B) in paragraph (7)--
(i) by striking ``supplemental'' and
inserting ``unfunded'';
(ii) in subparagraph (B)(i) by
striking ``(I)'' and ``and (II)
contributions for past civilian and
military service''; and
(iii) in subparagraph (B)(ii) by
inserting before the semicolon ``with
respect to participants currently
subject to this part''; and
(C)(i) at the end of paragraph (8) by
striking ``and'';
(ii) at the end of paragraph (9) by striking
the period and inserting ``; and''; and
(iii) by adding at the end the following new
paragraph:
``(10) `dynamic assumptions' means economic
assumptions that are used in determining actuarial
costs and liabilities of a retirement system and in
anticipating the effects of long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(3) in section 805(a)(1) (22 U.S.C. 4045(a)(i))--
(A) by striking the second sentence;
(B) by redesignating that subsection, as so
amended, as (a)(1)(A);
(C) by redesignating the last sentence of
that subsection, as so amended as (a)(1)(C);
(D) by inserting after subparagraph (A) the
following new subparagraph:
``(B) Each employing agency having
participants shall contribute to the Fund the
amount computed in a manner similar to that
used under section 8334(a) of title 5, United
States Code, pursuant to determinations of the
normal cost percentage of the Foreign Service
Retirement and Disability System. Contributions
under this subparagraph shall be paid from the
appropriations or fund used for payment of the
salary of the participant.'';
(E) in subsection (a)(2)(A) by striking ``An
equal amount shall be contributed by the
Department'' and inserting in its place ``Each
employing agency having participants shall
contribute to the Fund the amount computed in a
manner similar to that used under section
8334(a) of title 5, United States Code,
pursuant to determinations of the normal cost
percentage of the Foreign Service Retirement
and Disability System''; and
(F) in subsection (a)(2)(B) by striking ``An
equal amount shall be contributed by the
Department'' and inserting in its place ``Each
employing agency having participants shall
contribute to the Fund from amounts available
for salaries and expenses the amount computed
in a manner similar to that used under section
8334(a) of title 5, United States Code,
pursuant to determinations of the normal cost
percentage of the Foreign Service Retirement
and Disability System'';
(4) by repealing sections 821 and 822 (22 U.S.C. 4061
and 4062) and by adding the following new section:
``Sec. 821. Unfunded Liability.--(a)(1) Not later than June
30, 2005, the Secretary of State shall cause to be made
actuarial valuations of the Fund that determine the unfunded
liability of the Fund, as of September 30, 2004, attributable
to benefits payable under this subchapter and make
recommendations regarding its liquidation. After considering
such recommendations, the Secretary of State shall establish an
amortization schedule, including a series of annual
installments commencing October 1, 2004, which provides for the
liquidation of such liability by October 1, 2044.
``(2) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for
each fiscal year beginning after September 30, 2004, through
the fiscal year ending September 30, 2039, and shall establish
a new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for
each fiscal year beginning after September 30, 2039, and shall
establish a new amortization schedule, including a series of
annual installments commencing on October 1 of the second
subsequent fiscal year, which provides for the liquidation of
such liability over five years.
``(4) Amortization schedules established under this
subsection shall be set in accordance with generally accepted
actuarial practices and principles, with interest computed at
the rate used in the most recent valuation of the Foreign
Service Retirement and Disability System.
``(b) At the beginning of each fiscal year, beginning on
October 1, 2005, the Secretary of State shall notify the
Secretary of the Treasury of the amount of the first
installment under the most recent amortization schedule
established under paragraph (1). The Secretary of the Treasury
shall credit that amount to the Fund, as a Government
contribution, out of any money in the Treasury of the United
States not otherwise appropriated.'';
(5) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by
striking ``equal annual installments'' and inserting
``annual installments set in accordance with generally
accepted actuarial practices and principles'';
(6) in section 859 (22 U.S.C. 4071h) by adding
``percentage'' after ``normal cost'';
(7) in section 802 (22 U.S.C. 4042) by adding at the
end the following: ``The Fund is appropriated for the
payment of benefits as provided by this subchapter.'';
and
(8) in section 818 (22 U.S.C. 4058) by striking
``System'' and inserting ``Systems under this
subchapter''.
SEC. 404. PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM.
(a) In General.--Title II of the Public Health Service Act
(42 U.S.C. 202 et seq.) is amended by adding at the end the
following new part:
``PART C--PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM
``ESTABLISHMENT AND PURPOSE OF FUND
``Sec. 251. There is established on the books of the Treasury
a fund to be known as the Public Health Service Commissioned
Corps Retirement Fund (hereinafter in this part referred to as
the `Fund'), which shall be administered by the Secretary. The
Fund shall be used for the accumulation of funds in order to
finance on an actuarially sound basis liabilities of the
Department of Health and Human Services for benefits payable on
account of retirement, disability, or death to commissioned
officers of the Public Health Service and to their survivors
pursuant to part A of this title.
``ASSETS OF THE FUND
``Sec. 252. There shall be deposited into the Fund the
following, which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 255.
``(2) Any return on investment of the assets of the
Fund.
``(3) Amounts transferred into the Fund pursuant to
section 404(c) of the Deficit Control Act of 2004.
``PAYMENT FROM THE FUND
``Sec. 253. There shall be paid from the Fund benefits
payable on account of retirement, disability, or death to
commissioned officers of the Public Health Service and to their
survivors pursuant to part A of this title.
``DETERMINATION OF CONTRIBUTIONS TO THE FUND
``Sec. 254. (a)(1) Not later than June 30, 2005, the
Secretary shall determine the unfunded liability of the Fund
attributable to service performed as of September 30, 2004,
which is `active service' for the purpose of section 212. The
Secretary shall establish an amortization schedule, including a
series of annual installments commencing October 1, 2005, which
provides for the liquidation of such liability by October 1,
2044.
``(2) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each fiscal
year beginning after September 30, 2004, through the fiscal
year ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each fiscal
year beginning after September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability over 5 years.
``(b) The Secretary shall determine each fiscal year, in
sufficient time for inclusion in the budget request for the
following fiscal year, the total amount of Department of Health
and Human Services contributions to be made to the Fund during
the fiscal year under section 255(a). That amount shall be the
sum of--
``(1) the product of--
``(A) the current estimate of the value of
the single level percentage of basic pay to be
determined under subsection (c)(1) at the time
of the most recent actuarial valuation under
subsection (c); and
``(B) the total amount of basic pay expected
to be paid during that fiscal year to
commissioned officers of the Public Health
Service on active duty (other than active duty
for training); and
``(2) the product of--
``(A) the current estimate of the value of
the single level percentage of basic pay and of
compensation (paid pursuant to section 206 of
title 37, United States Code) to be determined
under subsection (c)(2) at the time of the most
recent actuarial valuation under subsection
(c); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of
title 37, United States Code) expected to be
paid during the fiscal year to commissioned
officers of the Reserve Corps of the Public
Health Service (other than officers on full-
time duty other than for training) who are not
otherwise described in subparagraph (A).
``(c) Not less often than every four years thereafter (or by
the fiscal year end prior to the effective date of any
statutory change affecting benefits payable on account of
retirement, disability, or death to commissioned officers or
their survivors), the Secretary shall carry out an actuarial
valuation of benefits payable on account of retirement,
disability, or death to commissioned officers of the Public
Health Service and to their survivors pursuant to part A of
this title. Each such actuarial valuation shall be signed by an
enrolled Actuary and shall include--
``(1) a determination (using the aggregate entry-age
normal cost method) of a single level percentage of
basic pay for commissioned officers of the Public
Health Service on active duty (other than active duty
for training); and
``(2) a determination (using the aggregate entry-age
normal cost method) of a single level percentage of
basic pay and of compensation (paid pursuant to section
206 of title 37, United States Code) of commissioned
officers of the Reserve Corps of the Public Health
Service (other than officers on full time duty other
than for training) who are not otherwise described in
paragraph (1).
``(d) All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(e) The Secretary shall provide for the keeping of such
records as are necessary for determining the actuarial status
of the Fund.
``PAYMENTS INTO THE FUND
``Sec. 255. (a) From amounts available to the Department of
Health and Human Services for salaries and expenses, the
Secretary shall pay into the Fund at the end of each month the
amount that is the sum of--
``(1) the product of--
``(A) the level percentage of basic pay
determined using all the methods and
assumptions approved for the most recent (as of
the first day of the current fiscal year)
actuarial valuation under sections 254(c)(1)
(except that any statutory change affecting
benefits payable on account of retirement,
disability, or death to commissioned officers
or their survivors that is effective after the
date of that valuation and on or before the
first day of the current fiscal year shall be
used in such determination); and
``(B) the total amount of basic pay accrued
for that month by commissioned officers of the
Public Health Service on active duty (other
than active duty for training); and
``(2) the product of--
``(A) the level percentage of basic pay and
of compensation (paid pursuant to section 206
of title 37, United States Code) determined
using all the methods and assumptions approved
for the most recent (as of the first day of the
current fiscal year) actuarial valuation under
section 254(c)(2) (except that any statutory
change affecting benefits payable on account of
retirement, disability, or death to
commissioned officers or their survivors that
is effective after the date of that valuation
and on or before the first day of the current
fiscal year shall be used in such
determinations); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of
title 37, United States Code) accrued for that
month by commissioned officers of the Reserve
Corps of the Public Health Service (other than
officers on full-time duty other than for
training).
``(b) At the beginning of each fiscal year, beginning on
October 1, 2005, the Secretary shall certify to the Secretary
of the Treasury the amount of the first installment under the
most recent amortization schedule established under section
254(a). The Secretary of the Treasury shall pay into the Fund
from the General Fund of the Treasury the amount so certified.
Such payment shall be the contribution to the Fund for that
fiscal year.
``INVESTMENTS OF ASSETS OF FUND
``Sec. 256. The Secretary may request the Secretary of the
Treasury to invest such portion of the Fund as is not, in the
judgment of the Secretary, required to meet the current needs
of the Fund. Such investments shall be made by the Secretary of
the Treasury in public debt securities with maturities suitable
to the needs of the Fund, as determined by the Secretary, and
bearing interest at rates determined by the Secretary of the
Treasury, taking into consideration current market yields on
outstanding marketable obligations of the United States of
comparable maturities. The income on such investments shall be
credited to and form a part of the Fund.
``IMPLEMENTATION YEAR EXCEPTIONS
``Sec. 257. (a) To avoid funding shortfalls in the first year
should formal actuarial determinations not be available in time
for budget preparation, the amounts used in the first year in
sections 255(a)(1)(A) and 255(a)(2)(A) shall be set equal to
those estimates in sections 254(b)(1)(A) and 254(b)(2)(A) if
final determinations are not available. The original unfunded
liability as defined in section 254(a) shall include an
adjustment to correct for this difference between the formal
actuarial determinations and the estimates in sections
254(b)(1)(A) and 254(b)(2)(A).''.
(b) Conforming Amendments.--
(1) Condition of detail.--Section 214 of the Public
Health Service Act (42 U.S.C. 215) is amended by adding
at the end the following new subsection:
``(e) The Secretary shall condition any detail under
subsection (a), (b), or (c) upon the agreement of the executive
department, State, subdivision, Committee of the Congress, or
institution concerned to pay to the Department of Health and
Human Services, in advance or by way of reimbursement, for the
full cost of the detail including that portion of the
contributions under section 255(a) that is attributable to the
detailed personnel.''.
(2) Exemption from sequestration.--Section 255(g)(1)
of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 905(g)(1)) is amended--
(A) in subparagraph (A), by inserting after
the item relating to ``payment to the foreign
service retirement and disability fund'' the
following item: ``Payment to the Public Health
Service Commissioned Corps Retirement Fund (75-
0380-0-1-551);''; and
(B) in subparagraph (B), by inserting after
the item relating to the ``Pensions for former
Presidents'' the following item: ``Public
Health Service Commissioned Corps Retirement
Fund (75-8274-0-7-602);''.
(c) Transfer of Appropriations.--There shall be transferred
on October 1, 2006, into the fund established under section 251
of the Public Health Service Act, as added by subsection (a),
any obligated or unobligated balances of appropriations made to
the Department of Health and Human Services that are currently
available for benefits payable on account of retirement,
disability, or death to commissioned officers of the Public
Health Service and to their survivors pursuant to part A of
title II of the Public Health Service Act, and amounts so
transferred shall be part of the assets of the Fund.
SEC. 405. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION COMMISSIONED
OFFICER CORPS RETIREMENT SYSTEM.
(a) In General.--The National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (title II
of Public Law 107-372) is amended by inserting after section
246 (33 U.S.C. 3046) the following new section:
``Sec. 246A. (a) Establishment and Purpose of NOAA
Commissioned Officer Corps Retirement Fund.--(1) There is
established on the books of the Treasury a fund to be known as
the National Oceanic and Atmospheric Administration
Commissioned Officer Corps Retirement Fund (hereinafter in this
section referred to as the `Fund'), which shall be administered
by the Secretary. The Fund shall be used for the accumulation
of funds in order to finance on an actuarially sound basis
liabilities of the Department of Commerce under military
retirement and survivor benefit programs for the commissioned
officers corps.
``(2) The term `military retirement and survivor benefit
program' means--
``(A) the provisions of this title and title 10,
United States Code, creating entitlement to, or
determining, the amount of retired pay;
``(B) the programs under the jurisdiction of the
Department of Defense providing annuities for survivors
and members and former members of the Armed Forces,
including chapter 73 of title 10, section 4 of Public
Law 92-425, and section 5 of Public Law 96-202, as made
applicable to the commissioned officer corps by section
261.
``(b) Assets of the Fund.--There shall be deposited into the
Fund the following, which shall constitute the assets of the
Fund:
``(1) Amounts paid into the Fund under subsection
(e).
``(2) Any return on investment of the assets of the
Fund.
``(3) Amounts transferred into the Fund pursuant to
section 405(c) of the Deficit Control Act of 2004.
``(c) Payments From the Fund.--There shall be paid from the
Fund benefits payable on account of military retirement and
survivor benefit programs to commissioned officers of the
commissioned officer corps and their survivors.
``(d) Determination of Contributions to the Fund.--(1)(A) Not
later than June 30, 2004, the Secretary shall determine the
unfunded liability of the Fund attributable to service
performed as of September 30, 2004, which is `active service'
for the purpose of this title. The Secretary shall establish an
amortization schedule, including a series of annual
installments commencing October 1, 2005, which provides for the
liquidation of such liability by October 1, 2044.
``(B) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each fiscal
year beginning after September 30, 2004, through the fiscal
year ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on September 30 of the subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(C) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each fiscal
year beginning after September 30, 2039, and shall establish a
new authorization schedule, including series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability over 5 years.
``(2) The Secretary shall determine each fiscal year, in
sufficient time for inclusion in the budget request for the
following fiscal year, the total amount of Department of
Commerce contributions to be made to the Fund during that
fiscal year under (e). The amount shall be the product of--
``(A) the current estimate of the value of the single
level percentage of basic pay to be determined under
subsection (e) at the time of the most recent actuarial
valuation under paragraph (3); and
``(B) the total amount of basic pay expected to be
paid during that fiscal year to commissioned officers
of NOAA on active duty.
``(3) Not less often then every four years (or by the fiscal
year end before the effective date of any statutory change
affecting benefits payable on account of retirement,
disability, or death to commissioned officers or their
survivors), the Secretary shall carry out an actuarial
valuation of benefits payable on account of military retirement
and survivor benefit programs to commissioned officers of the
Administration and to their survivors. Each such actuarial
valuation shall be signed by an enrolled Actuary and shall
include a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay for
commissioned officers on active duty.
``(4) All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices, and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(5) The Secretary shall provide for the keeping of such
records as are necessary for determining the actuarial status
of the Fund.
``(e) Payments Into the Fund.--(1) From amounts appropriated
to the National Oceanic Atmospheric Administration for salaries
and expenses, the Secretary shall pay into the Fund at the end
of each month the amount that is the product of--
``(A) the level percentage of basic pay determined
using all the methods and assumptions approved for the
most recent (as of the first day of the current fiscal
year) actuarial valuation under subsection (d) (except
that any statutory change affecting benefits payable on
account of military retirement and survivor benefit
programs to commissioned officers of the Administration
and to their survivors that is effective date after the
date of that valuation and on or before the first day
of the current fiscal year shall be used in such
determination); and
``(B) the total amount of basic pay accrued for that
month by commissioned officers on active duty.
``(2)(A) At the beginning of each fiscal year, the Secretary
shall determine the sum of--
``(i) the amount of the payment for that year under
the amortization of the original unfunded liability of
the Fund;
``(ii) the amount (including any negative amount) for
that year under the most recent amortization schedule
determined by the Secretary for the amortization of any
cumulative actuarial gain or loss to the Fund,
resulting from changes in benefits; and
``(iii) the amount (including any negative amount)
for that year under the most recent amortization
schedule determined by the Secretary for the
amortization or any cumulative actuarial gain or loss
to the Fund resulting from changes in actuarial
assumptions and from experience different from the
assumed since the last valuation.
The Secretary shall promptly certify the amount of the sum to
the Secretary of the Treasury.
``(B) Upon receiving the certification pursuant to paragraph
(1), the Secretary of the Treasury shall promptly pay into the
Fund from the General Fund of the Treasury the amount so
certified. Such payment shall be the contribution to the Fund
for that fiscal year.
``(f) Investment of Assets of the Fund.--The Secretary may
request the Secretary of the Treasury to invest such portion of
the Fund as is not, in the judgment of the Secretary, required
to meet the current needs of the Fund. Such investments shall
be made by the Secretary of the Treasury in public debt
securities with maturities suitable to the needs of the Fund,
as determined by the Secretary, and bearing interest at rates
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding marketable
obligations of the United States of comparable maturities. The
income of such investments shall be credited to and form a part
of the Fund.
``(g) Implementation Year Exceptions.--(1) To avoid funding
shortfalls in the first year should formal actuarial
determinations not be available in time for budget preparation,
the amounts used in the first year in subsection (e)(1)(A)
shall be set equal to the estimate in subsection (d)(2)(A) if
final determinations are not available. The original unfunded
liability as determined in subsection (d)(1) shall include an
adjustment to correct for this difference between the formal
actuarial determinations and the estimates in subsection
(d)(2)(A).''.
(b) Exemption From Sequestration.--Section 255(g)(1)(B) of
the Balanced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 905(g)(1)(B)) is amended by striking ``National
Oceanic and Atmospheric Administration retirement (13-1450-0-1-
306);'' and inserting ``National Oceanic and Atmospheric
Administration Commissioned Officer Corps Retirement Fund;''.
(c) Transfer of Appropriations.--There shall be transferred
on October 1, 2006, into the fund established under section
246A(a) of the National Oceanic and Atmospheric Administration
Commissioned Officer Corps Act of 2002 (title II of Public Law
107-372, as added by subsection (a)), any obligated and
unobligated balance of appropriations made to the Department of
Commerce that are available as of the date of the enactment of
this Act for benefits payable on account of military retirement
and survivor benefit programs to commissioned officers of the
NOAA Commissioned Officer Corps and to their survivors, and
amounts so transferred shall be part of the assets of the Fund,
effective October 1, 2006.
(d) Effective Date.--Subsection (c) (relating to payments
from the Fund) and (e) (relating to payments into the Fund) of
section 246A of the National Oceanic and Atmospheric
Administration Commissioned Officer Corps Act of 2002 (title II
of Public Law 107-372, as added by subsection (a)), shall take
effect on October 1, 2006.
SEC. 406. COAST GUARD MILITARY RETIREMENT SYSTEM.
(a) Accrual Funding for Coast Guard Retirement.--
(1) In general.--Chapter 11 of title 14, United
States Code, is amended by adding at the end the
following new subchapter:
``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND
``Sec. 441. Establishment and purpose of Fund; definitions
``(a) Establishment of Fund; Purpose.--There is established
on the books of the Treasury a fund to be known as the Coast
Guard Military Retirement Fund (hereinafter in this subchapter
referred to as the `Fund'), which shall be administered by the
Secretary. The Fund shall be used for the accumulations of
funds in order to finance on an actuarially sound basis
liabilities of the Coast Guard under military retirement and
survivor benefit programs.
``(b) Military Retirement and Survivor Benefit Programs
Defined.--In this subchapter, the term `military retirement and
survivor benefit programs' means--
``(1) the provisions of this title and title 10
creating entitlement to, or determining the amount of,
retired pay;
``(2) the programs providing annuities for survivors
of members and former members of the armed forces,
including chapter 73 of title 10, section 4 of Public
Law 92-425, and section 5 of Public Law 96-402; and
``(3) the authority provided in section 1048(h) of
title 10.
``(c) Secretary Defined.--In this subchapter, the term
`Secretary' means the Secretary of Homeland Security when the
Coast Guard is not operating as a service in the Navy and the
Secretary of Defense when the Coast Guard is operating as a
service in the Navy.
``Sec. 442. Assets of the Fund
``There shall be deposited into the Fund the following, which
shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 445 of
this title.
``(2) Any return on investment of the assets of the
Fund.
``(3) Amounts transferred into the Fund pursuant to
section 406(d) of the Deficit Control Act of 2004.
``Sec. 443. Payments from the Fund
``(a) In General.--There shall be paid from the Fund the
following:
``(1) Retired pay payable to persons on the retired
list of the Coast Guard.
``(2) Retired pay payable under chapter 1223 of title
10 to former members of the Coast Guard and the former
United States Lighthouse Service.
``(3) Benefits payable under programs that provide
annuities for survivors of members and former members
of the armed forces, including chapter 73 of title 10,
section 4 of Public Law 92-425, and section 5 of Public
Law 96-402.
``(4) Amounts payable under section 1048(h) of title
10.
``(b) Availability of Assets of the Fund.--The assets of the
Fund are hereby made available for payments under subsection
(a).
``Sec. 444. Determination of contributions to the Fund
``(a) Initial Unfunded Liability.--(1) Not later than June
30, 2005, the Secretary shall determine the unfunded liability
of the Fund attributable to service performed as of September
30, 2004, which is `active service' for the purposes of section
212. The Secretary shall establish an amortization schedule,
including a series of annual installments commencing October 1,
2005, which provides for the liquidation of such liability by
October 1, 2044.
``(2) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year, for each
beginning after September 30, 2004, through the fiscal year
ending September 30, 2039, and shall establish a new
amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability by October 1, 2044.
``(3) The Secretary shall redetermine the unfunded liability
of the Fund as of the close of the fiscal year for each fiscal
year beginning after September 30, 2039, and shall establish a
new amortization schedule, including a series of annual
installments commencing on October 1 of the second subsequent
fiscal year, which provides for the liquidation of such
liability over five years.
``(b) Annual Contributions for Current Services.--(1) The
Secretary shall determine each fiscal year, in sufficient time
for inclusion in the budget request for the following fiscal
year, the total amount of Department of Homeland Security, or
Department of Defense, contributions to be made to the Fund
during that fiscal year under section 445(a) of this title.
That amount shall be the sum of the following:
``(A) The product of--
``(i) the current estimate of the value of
the single level percentage of basic pay to be
determined under subsection (c)(1)(A) at the
time of the most recent actuarial valuation
under subsection (c); and
``(ii) the total amount of basic pay expected
to be paid during that fiscal year to members
of the Coast Guard on active duty (other than
active duty for training).
``(B) The product of--
``(i) the current estimate of the value of
the single level percentage of basic pay and of
compensation (paid pursuant to section 206 of
title 37) to be determined under subsection
(c)(1)(B) at the time of the most recent
actuarial valuation under subsection (c); and
``(ii) the total amount of basic pay and
compensation (paid pursuant to section 206 of
title 37) expected to be paid during that
fiscal year to members of the Coast Guard Ready
Reserve (other than members on full-time
Reserve duty other than for training) who are
not otherwise described in subparagraph
(A)(ii).
``(2) The amount determined under paragraph (1) for any
fiscal year is the amount needed to be appropriated to the
Department of Homeland Security for that fiscal year for
payments to be made to the Fund during that year under section
445(a) of this title. The President shall include not less than
the full amount so determined in the budget transmitted to
Congress for that fiscal year under section 1105 of title 31.
The President may comment and make recommendations concerning
any such amount.
``(c) Periodic Actuarial Valuations.--(1) Not less often than
every four years (or before the effective date of any statutory
change affecting benefits payable on account of retirement,
disability, or death to members of the Coast Guard or their
survivors), the Secretary shall carry out an actuarial
valuation of the Coast Guard military retirement and survivor
benefit programs. Each actuarial valuation of such programs
shall be signed by an enrolled actuary and shall include--
``(A) a determination (using the aggregate entry-age
normal cost method) of a single level percentage of
basic pay for members of the Coast Guard on active duty
(other than active duty for training); and
``(B) a determination (using the aggregate entry-age
normal cost method) of single level percentage of basic
pay and of compensation (paid pursuant to section 206
of title 37) for members of the Ready Reserve of the
Coast Guard (other than members on full-time Reserve
duty other than for training) who are not otherwise
described in subparagraph (A).
``(2) Such single level percentages shall be used for the
purposes of subsection (b) and section 445(a) of this title.
``(d) Use of Generally Accepted Actuarial Principles and
Practices.--All determinations under this section shall be in
accordance with generally accepted actuarial principles and
practices and, where appropriate, shall follow the general
pattern of methods and assumptions approved by the Department
of Defense Retirement Board of Actuaries.
``(e) Records.--The Secretary shall provide for the keeping
of such records as are necessary for determining the actuarial
status of the Fund.
``Sec. 445. Payments into the Fund
``(a) Monthly Accrual Charge for Current Services.--From
amounts appropriated to the Coast Guard for salaries and
expenses, the Secretary shall pay into the Fund at the end of
each month as the Department of Homeland Security, or
Department of Defense, contribution to the Fund for that month
the amount that is the sum of the following:
``(1) The product of--
``(A) the level percentage of basic pay
determined using all the methods and
assumptions approved for the most recent (as of
the first day of the current fiscal year)
actuarial valuation under section 444(c)(1)(A)
of this title (except that any statutory change
in the military retirement and survivor benefit
systems that is effective after the date of
that valuation and on or before the first day
of the current fiscal year shall be used in
such determination); and
``(B) the total amount of basic pay accrued
for that month by members of the Coast Guard on
active duty (other than active duty for
training).
``(2) The product of--
``(A) the level percentage of basic pay and
compensation (accrued pursuant to section 206
of title 37) determined using all the methods
and assumptions approved for the most recent
(as of the first day of the current fiscal
year) actuarial valuation under section
444(c)(1)(B) of this title (except that any
statutory change in the military retirement and
survivor benefit systems that is effective
after the date of that valuation and on or
before the first day of the current fiscal year
shall be used in such determination); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of
title 37) accrued for that month by members of
the Ready Reserve (other than members of full-
time Reserve duty other than for training) who
are not otherwise described in paragraph
(1)(B).
``(b) Annual Payment for Unfunded Liabilities.--(1) At the
beginning of each fiscal year, beginning on October 1, 2005,
the Secretary shall certify to the Secretary of the Treasury
the amount of the first installment under the most recent
amortization schedule established under section 254(a). The
Secretary of the Treasury shall promptly pay into the Fund from
the General Fund of the Treasury the amount so certified. Such
payment shall be the contribution to the Fund for that fiscal
year.
``Sec. 446. Investment of assets of the Fund
``The Secretary may request the Secretary of the Treasury to
invest such portion of the Fund as is not, in the judgment of
the Secretary, required to meet the current needs of the Fund.
Such investments shall be made by the Secretary of the Treasury
in public debt securities with maturities suitable to the needs
of the Fund, as determined by the Secretary, and bearing
interest at rates determined by the Secretary of the Treasury,
taking into consideration current market yields on outstanding
marketable obligations of the United States of comparable
maturities. The income on such investments shall be credited to
and form a part of the Fund.''.
(2) Technical amendments.--Such chapter is further
amended--
(A) by amending the center heading after the
table of sections to read as follows:
``SUBCHAPTER I--OFFICERS'';
(B) by amending the center heading after
section 336 to read as follows:
``SUBCHAPTER II--ENLISTED MEMBERS'';
(C) by amending the center heading after
section 373 to read as follows:
``SUBCHAPTER III--GENERAL PROVISIONS'';
and
(D) by amending the center heading after
section 425 to read as follows:
``SUBCHAPTER IV--SPECIAL PROVISIONS''.
(3) Clerical amendments.--The table of sections at
the beginning of such chapter is amended--
(A) by striking ``officers'' at the beginning
of the table and inserting ``subchapter i--
officers'';
(B) by striking ``enlisted members'' after
the item relating to section 336 and inserting
``subchapter ii--enlisted members'';
(C) by striking ``general provisions'' after
the item relating to section 373 and inserting
``subchapter iii--general provisions'';
(D) by striking ``special provisions'' after
the item relating to section 425 and inserting
``subchapter iv--special provisions''; and
(E) by adding at the end the following:
``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND
``441. Establishment and purpose of Fund; definitions.
``442. Assets of the Fund.
``443. Payments from the Fund.
``444. Determination of contributions to the Fund.
``445. Payments into the Fund.
``446. Investment of assets of the Fund.''.
(b) Implementation Year Exceptions.--To avoid funding
shortfalls in the first year of implementation of subchapter V
of chapter 11 of title 14, United States Code, as added by
subsection (a), if formal actuarial determinations are not
available in time for budget preparation, the amounts used in
the first year under sections 445(a)(1)(A) and 445(a)(2)(A) of
such title shall be set equal to those estimates in sections
444(b)(1)(A)(i) and 444(b)(1)(B)(i), respectively, of such
title if final determinations are not available. The original
unfunded liability, as defined in section 444(a) of such title,
shall include an adjustment to correct for this difference
between the formal actuarial determinations and the estimates
in sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i) of such title.
(c) Conforming Amendment.--Subparagraph (B) of section
255(g)(1) of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 905(g)(1)) is amended by striking
``Retired Pay, Coast Guard (69-0241-0-1-403)'' and inserting
``Coast Guard Military Retirement Fund (69-0241-01-403)''.
(d) Transfer of Existing Balances.--
(1) Transfer.--There shall be transferred into the
Fund on October 1, 2005, any obligated and unobligated
balances of appropriations made to the Department of
Homeland Security that are currently available for
retired pay, and amounts so transferred shall be part
of the assets of the Fund.
(2) Fund defined.--For purposes of paragraph (1), the
term ``Fund'' means the Coast Guard Military Retirement
Fund established under section 441 of title 14, United
States Code, as added by subsection (a).
(e) Effective Date.--Sections 443 (relating to payments from
the Fund) and 445 (relating to payments into the Fund) of title
14, United States Code, as added by subsection (a), shall take
effect on October 1, 2005.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs
for Federal Employees
SEC. 411. FEDERAL EMPLOYEES HEALTH BENEFITS FUND.
(a) Section 8906 of title 5, United States Code, is amended--
(1) by redesignating subsection (c) as subsection
(c)(1) and by adding at the end the following new
paragraphs:
``(2) In addition to Government contributions required by
subsection (b) and paragraph (1), each employing agency shall
contribute amounts as determined by the Office to be necessary
to prefund the accruing actuarial cost of post-retirement
health benefits for each of the agency's current employees who
are eligible for Government contributions under this section.
Amounts under this paragraph shall be paid by the employing
agency separate from other contributions under this section,
from the appropriations or fund used for payment of the salary
of the employee, on a schedule to be determined by the Office.
``(3) Paragraph (2) shall not apply to the United States
Postal Service or the government of the District of
Columbia.''; and
(2) by amending subsection (g)(1) to read as follows:
``(g)(1) Except as provided in paragraphs (2) and (3), all
Government contributions authorized by this section for health
benefits for an annuitant shall be paid from the Employees
Health Benefits Fund to the extent that funds are available in
accordance with section 8909(h)(6) and, if necessary, from
annual appropriations which are authorized to be made for that
purpose and which may be made available until expended.''.
(b) Section 8909 of title 5, United States Code, is amended
by adding at the end the following new subsection:
``(h)(1) Not later than June 30, 2006, the Office shall
determine the existing liability of the Fund for post-
retirement health benefits, excluding the liability of the
United States Postal Service for service under section
8906(g)(2), under this chapter as of September 30, 2006. The
Office shall establish an amortization schedule, including a
series of annual installments commencing September 30, 2006,
which provides for the liquidation of such liability by
September 30, 2043.
``(2) At the close of each fiscal year, for fiscal years
beginning after September 30, 2005, the Office shall determine
the supplemental liability of the Fund for post-retirement
health benefits, excluding the liability attributable to the
United States Postal Service for service subject to section
8906(g)(2), and shall establish an amortization schedule,
including a series of annual installments commencing on
September 30 of the subsequent fiscal year, which provides for
liquidation of such supplemental liability over 30 years.
``(3) Amortization schedules established under this paragraph
shall be set in accordance with generally accepted actuarial
practices and principles.
``(4) At the end of each fiscal year on and after September
30, 2006, the Office shall notify the Secretary of the Treasury
of the amounts of the next installments under the most recent
amortization schedules established under paragraphs (1) and
(2). Before closing the accounts for the fiscal year, the
Secretary shall credit the sum of these amounts (including in
that sum any negative amount for the amortization of the
supplemental liability) to the Fund, as a Government
contribution, out of any money in the Treasury of the United
States not otherwise appropriated.
``(5) For the purpose of carrying out paragraphs (1) and (2),
the Office shall perform or arrange for actuarial
determinations and valuations and shall prescribe retention of
such records as it considers necessary for making periodic
actuarial valuations of the Fund.
``(6) Notwithstanding subsection (b), the amounts deposited
into the Fund pursuant to this subsection and section
8906(c)(2) to prefund post-retirement health benefits costs
shall be segregated within the Fund so that such amounts, as
well as earnings and proceeds under subsection (c) attributable
to them, may be used exclusively for the purpose of paying
Government contributions for post-retirement health benefits
costs. When such amounts are used in combination with amounts
withheld from annuitants to pay for health benefits, a portion
of the contributions shall then be set aside in the Fund as
described in subsection (b).
``(7) Under this subsection, `supplemental liability' means--
``(A) the actuarial present value for future post-
retirement health benefits that are the liability of
the Fund, less
``(B) the sum of--
``(i) the actuarial present value of all
future contributions by agencies and annuitants
to the Fund toward those benefits pursuant to
section 8906;
``(ii) the present value of all scheduled
amortization payments to the Fund pursuant to
paragraphs (1) and (2);
``(iii) the Fund balance as of the date the
supplemental liability is determined, to the
extent that such balance is attributable to
post-retirement benefits; and
``(iv) any other appropriate amount, as
determined by the Office in accordance with
generally accepted actuarial practices and
principles.''.
SEC. 412. FUNDING UNIFORMED SERVICES HEALTH BENEFITS FOR ALL RETIREES.
Title 10, United States Code, is amended--
(1) in the title of chapter 56, by striking
``DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE'' and
inserting ``UNIFORMED SERVICES'';
(2) in section 1111--
(A) in subsection (a)--
(i) by striking ``Department of
Defense Medicare-Eligible'' and
inserting ``Uniformed Services'';
(ii) by striking ``Department of
Defense under''; and
(iii) by striking ``for medicare-
eligible beneficiaries'';
(B) in subsection (c)--
(i) by striking ``The Secretary of
Defense may'' and inserting ``The
Secretary of Defense shall'';
(ii) by striking ``with any other''
and inserting ``with each'';
(iii) by striking ``Any such
agreement'' and inserting ``Such
agreements''; and
(iv) by striking ``administering
Secretary may'' and inserting
``administrative Secretary shall'';
(3) in section 1113--
(A) in subsection (a)--
(i) by striking ``and are medicare
eligible'';
(ii) by striking ``who are medicare
eligible''; and
(iii) by adding at the end the
following new sentence: ``For the
fiscal year starting October 1, 2004,
only, the payments will be solely for
the costs of members or former members
of a uniformed service who are entitled
to retired or retainer pay and are
medicare-eligible, and eligible
dependents or survivors who are
medicare-eligible.'';
(B) in subsection (c)(1), by striking ``who
are medicare-eligible'';
(C) in subsection (d), by striking ``who are
medicare-eligible''; and
(D) in subsection (f), by striking ``If'' and
inserting ``When'';
(4) in section 1114, in subsection (a)(1), by
striking ``Department of Defense Medicare-Eligible''
and inserting ``Uniformed Services'';
(5) in section 1115--
(A) in subsection (b)(2), by striking ``The
amount determined under paragraph (1) for any
fiscal year is the amount needed to be
appropriated to the Department of Defense (or
to the other executive department having
jurisdiction over the participating uniformed
service)'' and inserting ``The amount
determined under paragraph (1), or the amount
determined under section 1111(c) for a
participating uniformed service, for any fiscal
year, is the amount needed to be appropriated
to the Department of Defense (or to any other
executive department having jurisdiction over a
participating uniformed service)'';
(B) in subsection (c)(2), by striking ``for
medicare eligible beneficiaries''; and
(C) by adding at the end the following new
subsection:
``(f) For the fiscal year starting October 1, 2004, only, the
amounts in this section shall be based solely on the costs of
medicare-eligible benefits of beneficiaries and the costs for
their eligible dependents or survivors who are medicare-
eligible, and shall be recalculated thereafter to reflect the
cost of beneficiaries defined in section 1111.''; and
(6) in section 1116--
(A) in subsection (a)(1)(A), by striking
``for medicare-eligible beneficiaries'';
(B) in subsection (a)(2)(A), by striking
``for medicare-eligible beneficiaries''; and
(C) in subsection (c), by striking
``subsection (a) shall be paid from funds
available for the health care programs'' and
inserting ``subsection (a) and section 1111(c)
shall be paid from funds available for the pay
of members of the participating uniformed
services under the jurisdiction of the
respective administering secretaries''.
SEC. 413. EFFECTIVE DATE.
Except as otherwise provided, this title shall take effect
upon enactment with respect to fiscal years beginning after
2005.
``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting for
Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial cost
account.
``Sec. 606. Effective date.''.
Subtitle C--Limit on the Public Debt
SEC. 421. LIMIT ON PUBLIC DEBT.
Section 3101 of title 31, United States Code, is amended to
read as follows:
``Sec. 3101. Public debt limit
``(a) In this section, the current redemption value of an
obligation issued on a discount basis and redeemable before
maturity at the option of its holder is deemed to be the face
amount of the obligation.
``(b) The face amount of obligations issued under this
chapter and the face amount of obligations whose principal and
interest are guaranteed by the United States Government (except
guaranteed obligations held by the Secretary of the Treasury
and intragovernmental holdings) may not be more than
$4,393,000,000,000 outstanding at one time, subject to changes
periodically made in that amount as provided by law.
``(c) For purposes of this section, the face amount, for any
month, of any obligation issued on a discount basis that is not
redeemable before maturity at the option of the holder of the
obligation is an amount equal to the sum of--
``(1) the original issue price of the obligation,
plus
``(2) the portion of the discount on the obligation
attributable to periods before the beginning of such
month (as determined under the principles of section
1272(a) of the Internal Revenue Code of 1986 without
regard to any exceptions contained in paragraph (2) of
such section).
``(d) For purposes of this section, the term `intragovernment
holding' is any obligation issued by the Secretary of the
Treasury to any Federal trust fund or Government account,
whether in respect of public money, money otherwise required to
be deposited in the Treasury, or amounts appropriated.''.
TITLE V--PAYGO EXTENSION
SEC. 501. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.
(a) Purpose.--Section 252(a) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as
follows:
``(a) Purpose.--The purpose of this section is to assure that
any legislation that is enacted before October 1, 2007, that
causes a net increase in direct spending will trigger an
offsetting sequestration.''.
(b) Timing.--Section 252(b)(1) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by striking
``any net deficit increase'' and all that follows through
``2002,'' and by inserting ``any net increase in direct
spending enacted before October 1, 2007,''.
(c) Calculation of Direct Spending Increase.--Section
252(b)(2) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended--
(1) by striking ``deficit'' the first place it
appears and inserting ``direct spending'';
(2) in subparagraph (A) by striking ``and receipts'';
(3) in subparagraph (C) by striking ``and receipts'';
and
(4) by amending the heading to read as follows:
``Calculation of direct spending increase.--''.
(d) Conforming Amendments.--(1) The heading of section 252(c)
of the Balanced Budget and Emergency Deficit Control Act of
1985 is amended to read as follows: ``Eliminating a Direct
Spending Increase.--''.
(2) Paragraphs (1), (2), and (4) of section 252(d) of the
Balanced Budget and Emergency Deficit Control Act of 1985 are
amended by striking ``or receipts'' each place it appears.
(3) Section 252(e) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking ``or
receipts'' and by striking ``, outlays, and receipts'' and
inserting ``and outlays''.
(4) Section 254(c)(3) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended--
(A) in subparagraph (A) by striking ``net deficit
increase or decrease'' and by inserting ``net increase
or decrease in direct spending'';
(B) in subparagraph (B) by striking ``amount of
deficit increase or decrease'' and by inserting
``increase or decrease in direct spending''; and
(C) in subparagraph (C) by striking ``a deficit
increase'' and by inserting ``an increase in direct
spending''.
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18. An Amendment in the Nature of a Substitute To Be Offered by
Representative Young of Florida, or His Designee, Debatable for 30
Minutes
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Spending Control Act of
2004''.
SEC. 2. EXTENSION OF DIRECT SPENDING CONTROLS.
(a) Purpose.--Section 252(a) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as
follows:
``(a) Purpose.--The purpose of this section is to assure that
any legislation that causes a net increase in direct spending
will trigger an offsetting sequestration.''.
(b) Timing.--Section 252(b)(1) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by striking
``any net deficit increase'' and all that follows through
``2002,'' and by inserting ``any net increase in direct
spending,''.
(c) Calculation of Direct Spending Increase.--(1) Section
252(b)(2) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended to read as follows:
``(2) Calculation of Direct Spending Increase.--OMB
shall calculate the amount of increase or decrease in
direct spending. If, in the President's budget
submission pursuant to section 1105(a) of title 31,
United States Code, baseline estimates for direct
spending for the current year exceed the direct
spending baseline estimates for the current year
assumed in the previous year's budget as a result of
legislation enacted since the previous budget, that
shall be treated as an increase in direct spending for
purposes of this section.
(2) Conforming Amendment.--Section 1105(a) of title 31,
United States Code, is amended by adding at the end the
following new paragraph:
``(35) a separate statement identifying the changes
in direct spending baseline estimates for the current
year resulting from economic factors, technical
factors, or enacted legislation.''.
(d) Conforming Amendments.--(1) The heading of section 252(c)
of the Balanced Budget and Emergency Deficit Control Act of
1985 is amended to read as follows: ``Eliminating a Direct
Spending Increase.--''.
(2) Paragraphs (1), (2), and (4) of section 252(d) of the
Balanced Budget and Emergency Deficit Control Act of 1985 are
amended by striking ``or receipts'' each place it appears.
(3) Section 252(e) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking ``or
receipts'' and by striking ``, outlays, and receipts'' and
inserting ``and outlays''.
(4) Section 254(c)(3) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended--
(A) in subparagraph (A) by striking ``net deficit
increase or decrease'' and by inserting ``net increase
or decrease in direct spending'';
(B) in subparagraph (B) by striking ``amount of
deficit increase or decrease'' and by inserting
``increase or decrease in direct spending''; and
(C) in subparagraph (C) by striking ``a deficit
increase'' and by inserting ``an increase in direct
spending''.
SEC. 3. PROJECTIONS UNDER SECTION 257.
Section 257(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by inserting after paragraph (6)
the following new paragraph:
``(7) Emergencies.--New budgetary resources
designated under section 251(b)(2)(A) or 251(b)(2)(I)
shall not be assumed beyond the fiscal year for which
they have been enacted.''.
SEC. 4. EXCEPTION FOR OUTLAY COMPONENTS OF EXPIRING RECEIPTS
LEGISLATION.
Section 252(d)(4) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking ``and'' at
the end of subparagraph (A), by striking the period and
inserting ``; and'' at the end of subparagraph (B), and by
adding at the end the following new subparagraph:
``(C) extending provisions in the Economic
Growth and Tax Relief Reconciliation Act of
2001 or provisions in sections 101 through 104,
section 202, or sections 301 and 302 of the
Jobs and Growth Tax Relief Reconciliation Act
of 2003.''.
SEC. 5. TECHNICAL CORRECTIONS TO THE BALANCED BUDGET AND EMERGENCY
DEFICIT CONTROL ACT OF 1985.
Part C of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended as follows:
(1) In section 250(a), strike ``SEC. 256. GENERAL AND
SPECIAL SEQUESTRATION RULES'' and insert ``Sec. 256.
General and special sequestration rules'' in the item
relating to section 256.
(2) In subparagraphs (F), (G), (H), (I), (J), and (K)
of section 250(c)(4), insert ``subparagraph'' after
``described in'' each place it appears.
(3) In section 250(c)(18), insert ``of'' after
``expenses''.
(4) In section 251(b)(1)(A), strike ``committees''
the first place it appears and insert ``Committees''.
(5) In section 251(b)(1)(C)(i), strike ``fiscal
years'' and insert ``fiscal year''.
(6) In section 251(b)(1)(D)(ii), strike ``fiscal
years'' and insert ``fiscal year''.
(7) In section 252(b)(2)(B), insert ``the'' before
``budget year''.
(8) In section 252(c)(1)(C)(i), strike ``paragraph
(1)'' and insert ``subsection (b)''.
(9) In section 254(c)(3)(A), strike ``subsection''
and insert ``section''.
(10) In section 254(f)(4), strike ``subsection'' and
insert ``section'' and strike ``sequesterable'' and
insert ``sequestrable''.
(11) In section 255(g)(1)(B), move the fourteenth
undesignated clause 2 ems to the right.
(12) In section 255(g)(2), insert ``and'' after the
semicolon at the end of the next-to-last undesignated
clause.
(13) In section 255(h)--
(A) strike ``and'' after the semicolon in the
ninth undesignated clause;
(B) insert ``and'' after the semicolon at the
end of the tenth undesignated clause; and
(C) strike the semicolon at the end and
insert a period.
(14) In section 256(k)(1), strike ``paragraph (5)''
and insert ``paragraph (6)''.
(15) In section 257(b)(2)(A)(i), strike
``differenes'' and insert ``differences''.
SEC. 6. CHANGE OF FISCAL YEAR.
(a) Fiscal Year To Begin November 1.--Section 1102 of title
31, United States Code, is amended by striking ``October 1''
and inserting ``November 1'' and by striking ``September 30''
and inserting ``October 31''.
(b) Title of Appropriation Acts.--Section 105 of title 1,
United States Code, is amended by striking ``September 30'' and
inserting ``October 31''.
(c) Transition to New Fiscal Year.--(1) As soon as
practicable, the President shall prepare and submit to the
Congress--
(A) after consultation with the Committees on
Appropriations of the House of Representatives and the
Senate, budget estimates for the United States
Government for the period commencing October 1, 2005,
and ending October 31, 2005, in such form and detail as
he may determine; and
(B) propose legislation he considers appropriate with
respect to changes in law necessary to provide
authorizations of appropriations for that period.
(2) The Director of the Office of Management and Budget shall
provide, by regulation or otherwise, for the orderly transition
of all departments, agencies, and instrumentalities of the
United States Government and the government of the District of
Columbia from the use of the fiscal year in effect on the date
of enactment of this Act to the use of the new fiscal year
prescribed by section 1102 of title 31, United States Code, (as
amended by subsection (a)). The Director shall prepare and
submit to the Congress such additional proposed legislation as
he considers necessary to accomplish this objective.
(d) Effective Date.--This section and the amendments made by
it (except for subsection (c)) apply to fiscal year 2006 and
subsequent fiscal years.
SEC. 7. SUNSETTING OF DISCRETIONARY PROGRAMS AND UNEARNED ENTITLEMENTS.
(a) Fiscal Year 2007.--Effective October 1, 2006,
authorizations for all programs (except earned entitlements)
shall terminate unless such programs are reauthorized after the
date of enactment of this Act and before October 1, 2006.
(b) Definitions.--For purposes of subsection (a), the term
``earned entitlement'' means an entitlement earned by service
or paid for in total or in part by assessments or contributions
such as social security, veterans' benefits, retirement
programs, and medicare.
SEC. 8. SPECIAL RULE FOR FISCAL YEAR 2005.
For purposes of ensuring the full funding of the
transportation guarantees in fiscal year 2005, the amounts
provided for fiscal year 2005 for discretionary new budget
authority and outlays allocated to the House Committee on
Appropriations as though under section 302(a) of the
Congressional Budget Act of 1974 shall be increased by not less
than $2,057,000,000 in budget authority and $634,000,000 in
outlays.
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19. An Amendment To Be Offered by Representative Young of Florida, or
His Designee, Debatable for 10 Minutes
Strike any provision that establishes, extends, or enforces
discretionary spending limits whether by amending section 251
of the Balanced Budget and Emergency Deficit Control Act of
1985 or otherwise.